ReadytoBuyPodcast

Today I'm speaking with Sara Sheppard, founder of SLS Wills and More to discuss why it's SO important for you to have a will. Will writing is not offered as a service under my business proposition and any queries would be referred to a suitably qualified third party. However, I have approached an expert to give an insight into this important subject. Please note that Will writing is not regulated by the Financial Conduct Authority. Sara is vastly experienced and an expert in her field, with over 30 years in the industry and sits on the Society of Will Writers Professional Standards Board as an associate member 04:15-06:23 What happens if someone dies without a will?Rules of intestacy will determine how your estate is distributed. -         Assets held in joint names will pass to the other surviving party automatically. However, assets in a sole name or property held as tenant in common – would be subject to the rules of intestacy. If there is a spouse or civil partner and children, the spouse or partner would receive first £270,000 of the assets (as of the rules in March 2022). Anything above this amount, would be divided into two equal shares – half to spouse / civil partner, other half divided between the surviving children. Therefore the house could end up being jointly owned by spouse and children, which can be particularly complex if children are below the age of 18. -         If single, your assets could pass to your parents, or siblings, or if you don't have either, it could pass to people you don't know about after following bloodlines (possibly even at cousins 3 or 4 times removed!). 06:25-10:52 What are the key reasons to have a will?-         You have control over what happens to your assets – tempered with the fact that you must make provisions for those financial dependant on you, for example, you can just cut out your spouse and children without a very good reason! This is also why it's wise to get advice when setting up a will and not just doing yourself without guidance. Use an expert, like you would with a mechanic for your car. A will is one of the most important documents you'll ever prepare and naturally you won't be around to make any corrections at that point. -         Wishes for your funeral - Wishes for who would look after your children. Without a will, THEY COULD END UP IN CARE – they wouldn't automatically be looked after by your family! Things happen more often than you think and as a married couple, something could happen to both of you – for example a car accident and neither of you survive 10:53-12:47 How often should we review our will?-         Recommend every 3-5 years, or -         On a lifechanging event, such as: o Moving Home o Birth of child or Grandchild o   On Retirement o After inheriting money o Divorce o   Death of a family member You can change as often as you like, provided you have mental capacity. 12:48-14:06 How does Marriage impact our current Will?Marriage automatically revokes any existing will, so a new will would need to be written or if you passed away, you would be intestate This is particularly relevant for blended families, with children from different partners and can get very complex and without a will in place could mean that your children could end up without any provision from your estate. Trusts can be set up in this scenario to protect your children and ensure they inherit their intended share of your assets, whilst also ensuring your new partner/spouse is catered for. 14:07-18:06 How easy is it to set up or update my will?Not difficult at all if you use an expert...

It might sound like a really simple concept, and ultimately it is - is something affordable?  In a mortgage context, the concept of affordability is a relatively new term and concept. Historically - income multiples determined how much you could borrow. Background In the early 2000s, lenders used to lend you 2.5 x your combined annual income if applying for a mortgage as a couple or 3 x your income if applying alone. With the explosion of house prices in the last 25-30 years, there is a need to have greater flexibility when it comes to affordability.  Regulation in this industry has increased during this time, initially by Financial Services Authority (FSA), and more recently renamed the FCA (Financial Conduct Authority). As a result - affordability was introduced – which goes a step further than simply looking at income multiples, which was quite a crude measure of how much you can borrow.  Whilst many lenders still use income multiples that sit behind their calculations, there's very much more emphasis placed on the affordability on a monthly basis – i.e. how much is coming in each month and how much is going out. In very simple terms, affordability is what's left after deducting your outgoings from your income. IncomeIt's rarely this simple though as there are so many different types and parts to your income. In the simplest example, you might be an employee with a fixed basic annual salary. However, you might have additional income such as: Bonus (monthly, quarterly or annual) Commission Overtime Allowances (Car, Shift etc) If self-employed, you could be a sole trader, a limited company director, contractor or Limited Liability Partner (LLP). We saw in episode 21 how lenders may use different income depending on your set up and their own internal rules. You may receive other types of income such as; child benefit, tax credits, child maintenance etc Lenders often have a different approach to each other too – which explains why you may be offered differing mortgage amounts from different lenders. OutgoingsMany different forms of outgoings and again may be treated in a different way by different lenders Credit commitments – loans, car finance, credit cards, store cards etc Childcare costs – nursery, childminder, nanny etc Child Maintenance Travel Costs Household expenditure Lenders will tend to use the Office of National Statistics (ONS) data, when they factor in a lot of these, so that will tend to take an average.  Lending DecisionsLenders will balance two main things when deciding whether to grant your requested mortgage: Affordability - Ultimately, how much of your income is left over after all of the above outgoings is the important figure to them. Is it sufficient for your mortgage payment now and if rates increase? Credit Risk - is essentially the lender gauging the risk of you as a borrower not paying your mortgage back They'll look at all sorts of data that they've got for people in similar situations to you historically, along with viewing the conduct of your credit agreements on your credit file before reaching their decision As with affordability, credit risk policy will vary between lenders – explaining why some may provide different decisions “DEFINITELY NOT A SILLY QUESTION” Feature Q – I've got a loan I intend to repay before my new mortgage starts. Will this affect the affordability calculation? A – It may do, depending on the lender. Most lenders will ignore credit commitments due to be repaid prior to the start of the new mortgage as they'll no longer be a credit commitment. However, some lenders take a more skeptical view that many people don't actually clear commitments they declare that intend to, so still deduct this commitment in their affordability calculation to determine how much they'll lend you. REMEMBER: 1)    Always SEEK ADVICE for your own circumstances, and; 2)    A mortgage is

“I'm self-employed, is it harder for me to get a mortgage” is a question that I'm often asked, and being self-employed myself too, I can see it from both sides.  In this episode, I'll be discussing how it does tend to be more involved and there are more things to consider when you're self-employed, but it certainly isn't impossible, and with a bit of help you can navigate the requirements and get the mortgage that you need 02:06-03:26 It's important to make a distinction between the different types of self-employment - the two that we're going to discuss today will be: Sole traders / partnerships Limited Company Directors  There are other forms of self-employment that we'll cover in another episode: Limited liability partner or an LLP, a common set up if you're a partner in a law firm, for example.  Contractor - such as an IT contractor where you invoice a company each week or each month and you organize your own tax.  What income can be used for the mortgage?  It depends upon the business set up (i.e. sole trader/partnership or Limited Company) and we'll explain both in detail.  One thing to be aware of - lenders will use figures that are disclosed to HMRC, so for those of you that don't disclose everything to the taxman, you can't have it both ways, income that is declared to the taxman essentially will be the income that will be usable from a mortgage perspective.  03:27-09:01 Sole trader / Partnership. You'll either be doing your own self assessments each year, or you'll have an accountant that does it. Your financial year will be in line with the tax year(the fiscal year) which runs from the 6th of April through to the 5th of April.  Self employment is quite different from being an employee where you have a set basic salary each month (and therefore easier for lenders to understand what you get paid now and going forward). Being self employed, your income can be very up and down, and so lenders are making a judgement on your future income by looking at your track record - usually your last two years, possibly the last three. As a sole trader, lenders look at your last two (possibly three) years' Net profit figures.  Not your turnover or total income, your net profit which comes after taking into account all of the expenses Ordinarily, lenders will look at an average of your last two years figures, although if your latest year is lower, they'll tend to use that lower figure instead of an average. They may also ask more questions, if it's quite a significant drop, to understand why that's the case, and more often than not, it might be a one-off capital expense (e.g. vehicle or equipment) which may give the lenders comfort that your profit next year will again be higher  HMRC Documents It depends on when we are in the year when applying for a mortgage, which determines which tax returns are required For example - If we're in July 2022, most lenders would be fine accepting your tax return which ran to 5th April 2021 as your latest year. They appreciate you may not have completed your April 2022 return yet! However, once we get to October 2022 – your tax returns for the period ending 5th April 2021 are now 18 months old and most lenders will want your 5th April 2022 tax return as the latest year.  Worth bearing in mind and getting organized if mortgage time coming around. Whilst your 5th April 2022 tax return isn't required by HMRC until the end of January 2023, in our example, if lenders want it – this could be the difference between getting your mortgage and not! Lenders didn't historically ask for business bank statements every time, but since the beginning of the COVID pandemic, we're seeing them request these on most applications, essentially just to show cash flow. 09:02-10:07 As standard, lenders will want to see your last 2 (or 3) years: –       HMRC tax summary (also referred to as tax...

So many of us have a mortgage and see it as a millstone around our neck, something that holds us back and can impact our lifestyle. I say the opposite, that our mortgage can flex around our lifestyle Your lifestyle and priorities will change as you go through different stages of life, whether you're young and single, right through to having a relationship(s), possibly children, career aspirations, retirement planning etc Think of an imaginary set of scales with the following on either side: income – which ultimately helps to fund your lifestyle Lifestyle – hobbies, leisure, family, career Naturally, the balance changes as you go through life as your career and income change, alongside your lifestyle. When it comes to owning your home, your needs will change along with your life-stage and lifestyle and having some flexibility will really help you to maintain this balance. A Mortgage – is a necessary vehicle to help us own our own home - None of us dream about getting a mortgage, it's the dream house and the lifestyle that we strive towards!06:27-07:27 What factors determine our monthly mortgage payments? 1.      How much you borrow – Loan Amount 2.      How long you repay the mortgage (term) 3.      Interest rate 07:29-11:27 1.      Loan Amount When we think about the loan amount, you may think it's set in stone – but you do have options that can help your lifestyle •       I can't stress how important regular reviews are. All of our situations change over time, so speaking with a whole of market mortgage broker can help you understand your options. •       You might decide that you need a bigger house (maybe your family has grown!). Moving may not always be the cheaper option – there are a number of costs you'll incur when moving such as stamp duty – so why not explore the cost of both extending and moving to help you make an informed decision. •       If you've got unsecured debts that are impacting your lifestyle due to their monthly costs, there may be an option to consolidate them into the mortgage for one monthly payment. You may end up paying more interest and securing a debt that was previously unsecured, but your advisor can talk you through your options to find the most suitable option for you. Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. •       If you've got a significant amount in savings (earning very little interest) there are mortgages that allow you to offset interest on your mortgage by using these savings, which could save you money. Again your advisor could talk you through these options to ascertain whether they're suitable for your situation •       If you have equity in your property and have been thinking of buying a holiday home – there might be the opportunity to increase your mortgage to help fund this. Again your advisor would be able to discuss your personal circumstances with you 11:28-15:38 2.      Interest Rate Getting the right deal for your circumstances is so important to ensure you're not paying more than you need too. Use a whole of market mortgage broker, who can look at the whole market to find you the most appropriate and competitively priced deal available to you, rather than just one or two – or even “your bank” Review regularly, rates change as we've seen over the past few years, so what was a good deal 2 years ago may not be now, or your circumstances may have changed! Lenders often put out headline low rates, but it might have a large arrangement fee (e.g. £999 or £1,999) attached to it, whereas a slightly higher rate might not have a fee at all and work out...

It's natural to follow your friends, family and colleagues when it comes to moving and we've all looked sideways at some point in our lives, yearning for what someone else has! We also tend to get bombarded with lots of information and “advice”, whether from those close to us or even the news and social media - but how should we decide if now is the right time to move? 02:10-08:47 Things are outside of your controlA Recession – like we had with the Credit Crunch in 2008 Impact of Brexit Covid We can't second guess what's going to happen or any impact on the Housing market prices drop – should you wait? My advice is to base your decision on the info you have about yourself and family, your situation and goals and try not to worry what might happen What if you wait? You might still be waiting in 2 years, 3 years, 5 years and putting your life and your plans on hold! Also, things that may not go to plan with you and your health – you can take steps to protect yourselves and your love ones again the financial impacts of this. No reason to delay if you're ready now. 08:46-10:20   Changing Jobs – within same firm or moving firmsUnderstand your options – a mortgage broker will help. Many mortgage lenders won't penalise you for changing jobs and often will take your new income into account if you're starting the new role within 3 months – subject to seeing your new contract. If your income is increasing, it may mean your mortgage options are greater than in your current role. Lenders tend to apply a sense of reasonability in terms of the job change being in a similar field and any income change being sustainable. 10:20-12:34 Maternity LeaveLenders don't discriminate if you're on maternity leave. If you intend to return to work after your leave – most lenders would want a letter from your employer confirming your return to work date, terms (hours per week and salary) and be happy to include your income in their affordability assessments. Lenders will also want to understand any childcare costs going forward – to ensure they've taken into account 12:35-15:35 DEFINITELY NOT A SILLY QUESTION FeatureQ - My friend says it's better to buy in the spring – is that right? A – No, there's no one “best” time of the year to buy. Our situations, requirements and dreams all unique and as explained throughout this episode – the right time to buy or move home is when it's the right time for you. There are times of the year, Spring being one of those, where more homes go up for sale – but it doesn't mean it will suit you or your family situation. REMEMBER: 1)    Always SEEK ADVICE for your own circumstances, and; 2)   A mortgage is a loan secured on your home and may be REPOSSESSED if you don't keep up mortgage payments 15:37-18:56 Need to save up for a bigger depositThe smallest deposit is 5%, so with any less, you'd need to continue saving, unless family may be able to assist with a gift to boost your deposit. Have you asked them? Understand the numbers – a mortgage broker will help. Don't just assume a 10% deposit is needed (for example) if you don't have this yet. Your mortgage broker could compare buying now with a 5% deposit now (if feasible) with waiting to save a larger deposit and buying in the future. If you're renting, saving more may take quite some time if you don't have much spare income and house prices may have increased in this time, so takes you even longer to save your 10% deposit Example of my clients in 2018 Didn't think it was possible to buy the home they rented from their landlord as they only had a 5% deposit. After exploring the options, I helped obtain a 95% mortgage and they bought the home they loved! 2 years later I helped organise their remortgage - their house price had increased and their mortgage balance had dropped a little - meaning they could get a 90% mortgage!! Had they waited to save the 10%, they would have had to...

Things to know about Leasehold properties! Vikki Herbert, Solicitor and Partner at Thackray Williams Solicitors joins me today to discuss some key things you need to know if you're considering buying a leasehold property Vikki has over 20 years experience in her field and specialises in Leasehold Enfranchisement Matters and anything related to a residential lease 02:39-05:09 The difference between a freehold and leasehold property – o  Freehold Property – you own both the land and the building. Most houses are freehold. There are some leasehold houses, although this is no longer allowed and new houses must be freehold o  Leasehold Property – essentially a long-term let – you rent the building that sits on the land. Flats are leasehold. 05:10-05:27 Discussions around topical issues/considerations with leasehold properties 05:28-11:17      Ground Rent - leaseholder pays the freeholder to rent the ground from them o  This is a fixed rent that's clearly set out in the terms of the lease o  Increasing Ground Rents – lenders require that increases are reasonable i.e. broadly in line with inflation (Retail Price Index / RPI). o  Good conveyancer/solicitor will check out the detail to ensure everything's in order o  Try and get as much info on ground rent, service charge and the length of the lease upfront from the selling agent – it can be checked out 11:20-14:01      Service charge o  The charge paid to the freeholder or management company to maintain common/communal parts and structure of the building (roof, stairwell, gardens etc) and to provide buildings insurance for the whole building o  It can change from year to year. o  If buying a property, looking back at service charges from previous years can give a good indication of how costs may vary and what maintenance/works have been done. o  Speaking to other leaseholders (flat owners) in the building may also give a good sense of how well the freeholder treats the leaseholders o  Expensive Service Charges can be challenged as freeholders are obliged to charge “reasonable service charges”. 14:02-17:30 “DEFINITELY NOT A SILLY QUESTION” Feature Q - Is it harder to get a mortgage on a flat near shops or commercial premises A – Potentially yes, but it all depends on a number of factors: how close, what types of shop / commercial premises, what the local area is like. Essentially the lender wants to know how the proximity may affect the future saleability of the flat, which also has an impact on it's value. As we've said many times, all lenders have a slightly different approach to each other, some are more accommodating than others when it comes to this. You may also find that you're required to put down more of a deposit than for a similar flat that isn't close to commercial premises, which lowers the risk to the lender. A Whole-of-Market Mortgage broker will be able to help you as they'll understand the stance of lenders from across the market – so be able to quickly identify who may and may not be able to help. REMEMBER: 1)    Always SEEK ADVICE for your own circumstances, and; 2)    A mortgage is a loan secured on your home and may be REPOSSESSED if you don't keep up mortgage payments 17:32-20:37       Obtaining consent from freeholder / management company Depending on the wording of the lease – you may need to get consent for any changes: o  When Remortgaging to another lender at the end of your rate, you would need to notify the freeholder of the new mortgage company. They may charge you an admin fee (this should be detailed in the lease) for this o   Internal alterations: Depending on wording of the lease, it's often that you can make alterations with the freeholder's consent. If for example

With a number of 5-year fixed mortgage rates available at under 1% during 2021, many borrowers have been tempted to take a long-term fixed rate, but is this right for you? Today I discuss why it's important to take everything into account when deciding upon the most suitable mortgage product for you – you're unique and what's right for someone else may not be right for you! All of our situations, hopes and goals are unique to ourselves – not a one size fits all Never a right or wrong answer to what type of rate we should have – we must make decisions based on the information and options we have available to us when making a decision. 03:01-05:19 Main different types of rate: Fixed Rate   Variable rate Tracker Discounted Standard Variable Rate 05:20-13:09 Things to consider – which can be closely intertwined with eachother. A whole of market mortgage broker will be able to help:       Attitude to risk Our budget – what is your max budget? Our plans for the next 2,3, 5 years and beyond o  Expanding or contracting family o  Childcare requirements changes o  Desire to live within a school catchment area Our relationship Our career path and expectations o  Potential Increase in Salary o  Possible Relocation External Factors e.g. Market Uncertainty - be mindful, but don't let it stop you 13:10-15:40 “DEFINITELY NOT A SILLY QUESTION” FeatureQ  - “Why did my best friend manage to get a better rate on his mortgage, even though we live on the same street?” A – There are so many factors that affect the rate you're on, even with the same lender. When you took the mortgage, the size of your deposit / amount of equity, type of rate e.g. 2 year fixed versus a 5 year fixed rate.  REMEMBER: 1)    Always SEEK ADVICE for your own circumstances, and; 2)    A mortgage is a loan secured on your home and may be REPOSSESSED if you don't keep up mortgage payments 15:43-17:23 LOWEST RATE ISN'T ALWAYS BEST!!! – Lenders offer products, some with fees and some without no fees. It may be more cost effective for you over the term of your product (for example over a 2 year fixed rate period) to have a slightly higher rate with no fee, as opposed to the lowest rate that has a fee (such as £999) attached.  17:24-23:28    Fixed rateso  Gives peace of mind that monthly payments are fixed for a set period of time e.g. 2, 3, 5 or 10 years o  Tied to that product & lender for that set period and potentially have to pay charges/penalties to come away o  If rates across the market drop – your rate won't as it's fixed o  At the end of your fixed rate, you can organise another mortgage rate – although you'd have to access the rates that are available at that time 23:29-26:03 Tracker Rateso  Can go up or down o  There may be products with no early repayment charges/penalties for repaying early or switching to another lender.    Discounted Rateo  Can go up or down o  Lender can set this rate independently of the bank of England base rate  26:04-27:20      Standard Variable Rateo  Default rate at the end of your product rate, which is often higher o  no early repayment charges / penalties for repaying early or switching to another lender. 27:22-29:36 Summaryo Your situation, hopes and goals are unique, so try not to listen to friends, family or colleagues as their situation will be different to yours o Different types of rates to suit your requirements o  Important to understand your options and there's help available from Whole of Market mortgage brokers   Thanks for listening/reading! Joint us next week when we'll be discussing important things to consider when buying...

“Budgeting Advice with Lucy Wallington” Lucy Wallington, the founder of Budgeting & Planning, joins me today to discuss some top tips to help you budget and focus towards achieving your money goals, whether that's saving for your first home, next home or even that wedding you've always dreamed off!! Lucy has over 30 years of experience in management roles in the retail industry and draws parallels between running the finances in her retail stores to running the finances in her household. Budgeting plays a huge part in both, which led Lucy to start her business - Budgeting & Planning, providing budget planners for those in “every season of life”. 03:52-06:27 - It's common for people not to be confident with their finances. Often this stems from “not being good at maths at school” and remains with people throughout life as an excuse not to take control of your money. Important to get a grip on your finances. Know what money's coming in and what's going out 06:28-09:19 - Start with the End Goal in Mind – It's important to understand what you're trying to get from life and even harder to achieve it if you don't know what it is! We're all different, our goals might be – dream 5 bed forever family home it may be 2 holidays a year, it may be linked to hobbies Be intentional and don't sleepwalk and amble along. 09:20-14:40 Tips for First Time Buyers Living at home, saving for a deposit: Tip 1 – Have a 12-month plan – On a blank sheet of paper, in a pad or spreadsheet: o  Put income and outgoings for each of the next 12 months o Include before and after e.g. expected move date o  This at-a-glance view of your finances will give you clarity o  Have separate Bank Accounts: 1.     Salary goes into bill account for all direct debits etc, then transfer: 2.    Spending money into a 2nd current account – everyday spending 3.    Surplus into savings account – do not touch unless it's an emergency! 14:41- Tip 2 – Be ruthless with what's essential – can you make sacrifices to help save more? Tip 3 – Have some fun money, give yourself something to look forward to or the occasional treat – spend it with purpose. 22:30-25:15 “DEFINITELY NOT A SILLY QUESTION” Feature Q  - What Bank Statements will I need to provide when I organise my mortgage application and in what format? A – Banks tend to want to see your latest 3 months statements from each of your current accounts even if you have several. They want to see your income (salary etc) and expenditure (direct debits, credit commitments etc). They require this in a PDF file format, which you can obtain from your online banking. If you're unsure how, a quick google search will help explain how to obtain your statements from your bank. REMEMBER: 1) Always SEEK ADVICE for your own circumstances, and; 2) A mortgage is a loan secured on your home and may be REPOSSESSED if you don't keep up mortgage payments 25:15-34:56 Budgeting Tips for First or Next Time Buyers, already paying a mortgage or rent Spending Exercise Print your last 3 bank statements and get 3 highlighter pens (or download into a spreadsheet) Highlight all regular essential spending in one colour – Petrol, Rent, Bills, Food etc. Add them up for each month. Highlight variable essentials in a different colour – Vet Bills, Car Repairs, dentist, prescriptions, Kids items, Hairdresser etc Highlight items you really wanted in a 3rd colour – nights out, coffees, clothes, books etc What's left? Did you really need to spend this – it helps show you money you spend that you really didn't need to and helps you focus    Bank Statements – check regularly. A few minutes each month can form a healthy habit and ensure you're on top of your finances, which in turn help you keep on track stay in control...

Welcome to today's episode - Use a trusted Mortgage Broker or DIY It's a common consideration – often driven by a number of different things like “we've always banked with ABC Bank, so we thought it was best to go and see them and get a mortgage”, or "I thought it might cost me more if I use a broker!". It's a topic I've been keen to talk about on the podcast as I've seen it from all 3 sides: I worked for Abbey National (now Santander) for 5 years, several as a branch Mortgage Advisor I'm now a whole of market Mortgage Broker and run MHC Mortgage & Protection Ltd I've organised mortgages myself directly and via a broker I really believe that if you understand all the pros and cons, it's a fairly simply choice to make. I use the term trusted Mortgage Broker – this is very important along with them being Whole of Market – i.e. can organise mortgages with lenders across the whole market. We have another podcast episode that talks about choosing the right mortgage broker for you and choosing one that's can support you through your mortgage life – but for now, I think it's obvious why you'd want a GOOD one! Let's consider your situation now, you need to organise a mortgage to buy your first home, buy your next home or remortgage at the end of your current rate. Do you: 1.       go straight to your bank, or 2.       find another bank to help,  or 3.       do you use a mortgage broker     Consider the question again in a slightly different way What's precious to you? TIME | MONEY | LOW STRESS LEVELS | NO HASSLE | FEELING SUPPORTED NOW and Future | PEACE of MIND Benefits of using a broker Time o   After an initial call – often under an hour – they'll get some docs then go away and research your options and report back. Includes leg work of discussing with lenders if needed – no need for you to spend researching lender rates, policy, criteria etc No wasted time – if you go to a bank and they don't accept you, you have to start again elsewhere from scratch! Rarely difficult to get an appointment – much harder in banks – often telephone only appointment Get an agreement in principle from a lender – no need for you to sit on the phone for an hour Submit the application for you – submit your docs, Brokers spend time chasing solicitors and lenders for updates and to ensure things progress – you're not using your time         Money Understanding your options – One stop shop – not just one, they can recommend the most suitable for you You may pay a broker fee – we charge £199 at MHC Mortgage & Protection Ltd – but even over a 2 year period, that's only £16.58 per month – a good broker may save you hundreds, possibly thousands of £s over the course of your mortgage. Commission–lenders factor this into their pricing, in the same way that they factor the costs of their overheads (branch network into their pricing of rates). Therefore, most lenders now offer the same rates directly to customers as via brokers. (There may be the occasional exclusive product available by going direct, whilst there may also be the occasional exclusive product available via the broker channel)   "DEFINITELY NOT A SILLY QUESTION!" Feature Q  - How easy is it for me to book a diary with you as a mortgage broker and what's the process A – We try and make it as easy as possible, you can book a meeting straight into my online calendar at a convenient day and time for you. https://calendly.com/mark-humphrey-mhc/30min (https://calendly.com/mark-humphrey-mhc/30min) You can choose whether you prefer a phone or zoom call. You simply leave your email address, phone number and a brief description of your requirements and you'll receive an immediate confirmation email and text of our call. REMEMBER: 1)    Always SEEK ADVICE for your own...

I discuss - Moving home, where do you start? It's likely that this has been on your mind for some time and now you're getting motivated to take steps to make that move a reality. Often it's the case of needing more space for a growing family, maybe moving areas for a job move or to get your children into a particular school. Whatever the reason, it should be a really exciting time, the thought of new beginnings and a fresh start. It can be daunting though and understanding what to do and in what order can help make things as smooth and stress-free as possible. It's likely that you won't have moved for quite some time, so it's possible that you can't remember the process from last time, and even more likely that things have changed. We spoke before, back in episode 1 about buying for the first time and where to start. In reality, things aren't too different to then, only that you now have a home to sell too. If you're considering renting out your current home and buying a new residential home – don't worry we'll have an episode to discuss this (also known as a let-to-buy scenario), but for now, let's assume you're selling and buying. It's so important to break things down into smaller chunks – which I why I can't emphasise enough that you should view selling your home and buying your next one as TWO SEPARATE TRANSACTIONS. Yes, you'll most probably need the proceeds of your sale for your deposit on your new home, but they really are two different things. You'll also need to do one before the other – selling your home is usually the hardest part and finding a new home (depending on what you're looking for) a fair bit quicker and easier! 04:40-10:28 1.      Get help from a Whole-of-Market Mortgage Broker asap and put a plan in place from the very start. Review your income and outgoings to ascertain how much you can borrow for your new home Ascertain how much you'll need upfront:                                  i.    Buying and Selling costs ii.   Deposit The above feeds into what type of properties you can start looking at and if it's feasible to buy the type of property you want, in the area you want.                                                           This can be based on an approx. sale price – using Rightmove and an approximate sale price. Always better to be conservative with the numbers and to have funds leftover than having to find more! 10:28-13:57 2.      Speak with Estate Agents – at least 2 or 3   Get your home valued and start to get a feel for who you trust to work with to sell your home – Don't just choose the one that says they can sell your house for the most – are they credible, would you buy a house from them, are they genuinely taking an interest in your home or does it just feel like another “sale” They'll give you a fair idea of an achievable sale price for your home – which you can use for your plan (and update if necessary) They may give you tips on how to get your home as presentable as possible – a lick of paint, declutter, tidy up the garden etc etc 13:58-22:20 No Silly Questions Feature Q  - "If I'm in the middle of a fixed rate with my current lender, do I have to go back to them to organise the mortgage if I want to move home? " A – No! A whole of market mortgage broker will work with lenders from the whole market and it's likely that includes your current lender. They'll be able to look at your...

On this final episode of season one of the ReadytoBuy Podcast I will be having a conversation with two more of my clients – Liane and James – a couple of first-time buyers that have, at the time of recording, been living in their home for three years since getting their mortgage! Time Stamps PART ONE 00:00 – Introduction 01:38 – Meet Our First-Time Buyer – Three Years On 02:17 – Interview with Liane & James: Part One 02:56 – Situation When Deciding to Buy 05:20 – Getting a Deposit 06:46 – On Saving 09:00 – Going to a Mortgage Broker INTERMISSION 11:32 – ‘Definitely Not A Silly Question' Segment 12:01 – Question 12:09 – Answer 12:52 – Contact Info for Questions 13:18 – Risk Warning PART TWO 13:56 ­– Interview with Liane & James: Part Two 13:56 – The House Search 15:37 – Finding the Right House 18:21 – Offer Acceptance to Moving In 20:23 – Furniture 21:23 – Working on the House 23:19 – Anything Done Different?  27:10 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (01:38 – 11:31) Interview with Liane & James – Part One (Note: Points in brackets are mentioned by me) Situation (Tell me about your situation and the first point you thought you were ready to buy?) James: We were seeing each other for a year and decided to take it to the next level and dive straight into a mortgage. We thought renting would be a waste of money. But we we're both living at home and wanted to fly the nest. (In regards to knowing each other for a long time, I would advise to all clients that they know who they are jumping into getting a mortgage with.) Deposit (How did you go about getting the deposit together?) James: We decided to go 50/50 on the deposit. It was easier to save by living at home and I opened a Help To Buy ISA and was putting £200 a month into it. I was also saving money regularly whilst at uni. (Saving as early as possible in case you would need money is a great mindset to have.  Was it purposefully for a house?) James: Saving the money was more in general, but the Help To Buy ISA was for a house. I didn't want to miss the opportunity of government schemes like this and maximise saving as much as possible. Liane: I think it's important to start early for people not good at saving. Over the years, I dipped into savings for things. When getting with James, I realised I needed to save more which was helped by living at home. I opened up a Help To Buy ISA as well. There's extra fees like Stamp Duty and solicitor fees to take into account when saving for a deposit so the ISA helped a lot. (It's never too late to start saving.) Mortgage broker (So you've decided to start saving, what made you come to me?) Liane: I never had thought about a broker but I knew about you beforehand, so I went to you for general advice which was really helpful and it went from there. (As a first-time buyer, you may not know about the process, so it is a case of ‘mapping' it all out.) Liane: The initial call with you was helpful to know what we could afford to get. (So many people have already looked at things like Rightmove to see what's available, but it's a case of getting a summary of everything.) (11:32 – 13:55) Definitely Not A Silly Question Q – If you could give yourself some advice, knowing what you know now, before you bought for yourself for the first time, what would it be? A – Plan as far forward as is reasonable. Whether it be saving for a deposit or budgeting, just generally make sure you have a plan and are not doing things last minute. There's nothing wrong with spontaneity, but when it comes to big things try and plan ahead. REMEMBER: 1)    Always SEEK ADVICE for your own circumstances, and; 2)    A mortgage...

On this episode of the ReadytoBuy Podcast I will be having a conversation with one of my clients – Simone – who is a young first-time buyer that has, at the time of recording, just recently finished on obtaining her mortgage and just moved into her new home! Time Stamps PART ONE 00:00 – Introduction 01:38 – Meet Our First-Time Buyer – One Week After Completion 02:09 – Interview with Simone: Part One 03:00 – Situation When Buying First Home 06:45 – Saving for Deposit 09:07 – Huge Sacrifice? INTERMISSION 13:00 – ‘Definitely Not A Silly Question' Segment 13:29 – Question 13:34 – Answer 14:20 – Contact Info for Questions 14:46 – Risk Warning PART TWO 15:24 ­– Interview with Simone: Part Two 15:24 – Describing the House Search 20:33 – Problems with New-Builds 21:40 – Feeling of Walking Into New Home 23:56 – Would You Do Anything Different? 26:31 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (02:09 – 12:59) Interview with Simone – Part One (Note: Points in brackets are mentioned by me) Situation when buying first home Was living at home and saving. Decided to contact a broker to see what affordability was and what schemes were available or if potentially could buy property outright. Bit of a minefield when looking at government schemes and found that talking to a broker in person was the best option. (Everybody would rather buy through the standard channels, but sometimes we all need a little help.) Originally wanted a two-bedroom property, but realised that it wasn't affordable and had to change expectations. (Was a bit of a challenge, living in London.) Saving for deposit Whilst at home, was paying minimal rent to mum. This enabled saving for the deposit. Started properly saving in 2016 upon opening a Help To Buy ISA with NatWest and also opened a secondary Stocks & Shares ISA with Vanguard and split money between the two. This made it difficult to extract money and helped budget and save. New job after starting to save which brought more income. Still budgeted the same amount but increased amount being put into savings. Really challenging because there's always things to spend money on, but restraint helped and it paid off. Did it feel like a huge sacrifice or was it manageable? It was manageable whilst still being able to do enjoyable things. Shopping habits changed to buy second-hand things as a cheaper alternative which was better for lifestyle. (For people living at home they are in a good position to save because they are not having to worry about all the extra costs like tax, bills, contracts, as well as the monthly mortgage payments.) When you do have the mortgage and all the bills on top it adds up quickly, so best not spend loads of money on other things. (When you have an end goal helps to get focus and get there quicker.) (13:00 – 15:23) Definitely Not A Silly Question Q – “Why do you do the job that you do?” A – I love being asked this and I reflect on it a lot! As somebody who has been in the mortgage industry for the past 20 years, working for myself in the last few has shown me what a difference it can make to the lifestyles of people buying their first home, their next home or saving money. The reason I do what I do is because I love helping people and making a difference and I see that every day! REMEMBER: 1) Always SEEK ADVICE for your own circumstances, and; 2) A mortgage is a loan secured on your home and may be REPOSSESSED if you don't keep up mortgage payments (15:24 – 26:30) Interview with Simone – Part Two Can you describe your house search? Looked at around 15-20 properties before finding the one currently residing in. Was sceptical of the ‘feeling' of finding the right one until it came when viewing current home....

On this episode of the podcast we will be recapping everything spoken about over the course of season one in one final grand summary of the entire process, from first starting to think about a mortgage all the way to picking your keys up and settling into your new home! Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘Buying Your First Home – In Summary' 02:01 – Where You Start 02:01 – Understanding All Your Options 03:03 – Putting a Plan Together 05:25 – Getting Help if Needed 07:27 – Getting as Presentable as Possible 08:00 – Credit File 08:45 – Bank Statements 09:25 – Documents 10:23 – Agreement-in-Principle 11:51 – Searching for Your Home 12:10 – Research 13:08 – Register with Agents 14:03 – Try and Enjoy It 15:02 – After Finding Your Home 15:39 – Asking Questions 16:25 – Estate Agent's Due Diligence 17:01 – Memorandum of Sale INTERMISSION 17:48 – ‘Definitely Not A Silly Question' Segment 18:17 – Question 18:26 – Answer 19:58 – Contact Info for Questions 20:24 – Risk Warning PART TWO 21:02 ­– Mortgage Application 22:48 – Mortgage Lender's Revisions 23:44 ­– Conveyancing  23:57 – Advice on Choosing Solicitors 24:55 – Regarding ‘Cheaper' Solicitors  25:44 – Questionnaire 26:37 – Searches 27:39 ­– Protection 28:29 – Protection Against Death 28:52 – Protecting Income 29:28 – Protecting Against Serious Illness 30:10 ­– Moving Towards Completion 30:54 – Visiting the Property 31:28 – Measuring Up 32:12 – Internet 32:39 – Addresses 32:57 – Sorting Removals 33:22 – Time Off 33:43 – Exchange Date 33:56 – Buildings Insurance 34:53 – On the Day  35:51 – After Completion 37:13 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (01:46 – 07:26) Where You Start First off, let's get all of your options on the table. This is where using a whole-of-market mortgage broker is crucial. You can go to your bank, and they can tell you the rates they will offer, but every lender looks at you differently and so what you might be able to do with one you may not with another. A whole-of-market mortgage broker will have access to the whole market, which can really help with your options. In these early stages, you will put a plan together in determining what you can buy in terms of price and area and this raises a few questions: How much are the buying costs? And, as a result, how much will you need to: Put in? Save? Put towards a deposit? Further costs may include: Conveyancer/solicitor costs Stamp duty Choice of a more detailed survey than the required basic one  Mortgage product costs Broker fee Decoration and furniture costs after moving in  If you were to do it yourself, you may not factor in all these costs! Also, monthly payments for the mortgage and utility bills (gas, water, electric) are things you may not have had to pay for before. Furthermore, what you can afford to borrow is important, and knowing what everyone is offering can help drill down your best options. NOTE: All of this is why it is so important to get a broker, budget yourself and know what you can afford. In an ideal world, you would be able to afford it with just your mortgage and deposit, but for some you may need extra help. In this case, there are various schemes to choose from: Help To Buy Equity Loan Scheme –  provides an interest-free loan of 20-40% of the value of the property. (NOTE: the loan is interest-free for the first five years, after which you would then start paying the interest) Shared Ownership (“part buy, part rent”) – where you purchase a percentage of the property and then rent the rest, with the intention of buying out the rest later on or just sell the property, clearing it and moving on. Joint Borrower Sole...

On this episode of the podcast, we will be discussing the various obstacles that first-time buyers may encounter and how to navigate them towards getting your first home. Time Stamps PART ONE 00:00 – Introduction 01:38 – Recap & ‘Overcoming the Barriers as a First-Time Buyer' 03:39 – Four Main Things 03:52 – Deposit 03:52 – Finances of a Deposit 05:09 – Living With Family 05:53 – Getting Financial Help from Family 07:26 – Income 07:26 – Borrowing & Protection 08:52 – Changes In Income 10:18 – Example 11:27 – Overtime INTERMISSION 12:26 – ‘Definitely Not A Silly Question' Segment 12:54 – Question 13:04 – Answer 14:58 – Contact Info for Questions 15:24 – Risk Warning PART TWO 16:01 – Outgoings 17:40 – Expectations 20:15 – Concluding Statement 20:43 – My Personal Experience 25:15 – Summary 26:49 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (01:38 – 03:51) Recap  We're coming towards the end of season one and hopefully we've helped you in your first quest to buy your first home! I'm always conscious of what we hear about the difficulty and barriers that first-time buyers face when getting onto the property ladder, so I wanted to talk them through with you and show you how you can overcome them. One of the big issues is knowledge. There are many aspects to obtaining a mortgage and it is helpful to know what all of these are. A mortgage broker can help centralise all of these things, being knowledgeable about it all, and provide you with understanding of the situation all the way through. Ultimately, most barriers are down to affordability. This why it is so important to use a mortgage broker to look at options and help you navigate things. Options will vary greatly from lender to lender. It's no exaggeration to say that some clients have found that they can borrow double the amount from one lender compared to another! There's four areas I want to talk about in this episode: Deposit Income Outgoings Expectations (03:52 – 07:08) Deposit Many people struggle to save for a deposit and in recent years this problem has been exacerbated by increasing property prices. Because a deposit is a percentage of the purchase price on a property, the amount needed for it increases alongside this.  Thankfully, many lenders offer mortgages with as little as a 5% deposit. To use some figures to show what this looks like, some examples are: £15,000 deposit on £300,000 property £20,000 deposit on £400,000 property £25,000 deposit on £500,000 property This still a lot of money, even for a deposit, but it is much more achievable and I see it on a daily basis. Many people may go back and live with family whilst they are saving for a deposit on a property. If you are lucky enough to have family that doesn't charge you for rent or only charges you a minimal amount, this can help you save hundreds and even thousands a month in savings relatively quickly. The statistics show that lending from parents is by far the biggest source of savings for a deposit. Sometimes it's just a case of being open and asking them and making them aware of the situation and you might find that they are willing to put money aside or speak to your grandparents. Make sure you don't assume that there isn't help available! (07:26 – 12:25) Income For some people, they may find that they have the deposit, but their income is the issue. You'll tend to find that the mortgage works around somewhere between 4 – 4.5 times your gross annual salary; or your joint salary, if there's two of you. So it helps if two of you are on the mortgage, but just be careful with what you borrow. There are protections you can put in place as well for if circumstances change. If you have any extra income due, say, from a pay...

On this episode of the podcast, we will be discussing three slightly different routes, deviating from the standard mortgage procedure that has been discussed throughout the season, that may help first-time buyers. Time Stamps PART ONE 00:00 – Introduction 01:38 –  Recap & ‘Extra Help for First-Time Buyers' 03:23 – ‘Help To Buy Equity Loan' Scheme 03:23 – Definition 03:55 – Explanation 04:40 – Percentages 05:00 – Three Agents 06:03 – Getting an Advisor 07:16 – Interest 08:13 – Paying Back the Loan 09:26 – Reservation Fees 10:30 – Considerations INTERMISSION 12:59 – ‘Definitely Not A Silly Question' Segment 13:28 – Question 13:34 – Answer 14:54 – Contact Info for Questions 15:19 – Risk Warning PART TWO 15:57 – ‘Shared Ownership' scheme 15:57 – Definition & Explanation 17:29 – Charges 18:04 – Second-Hand Properties 18:35 – Advantage for Non First-Time Buyers 19:10 – Aim of the Scheme 21:14 – ‘Joint Borrower Sole Proprietor' scheme 21:14 – Definition  21:50 – Explanation 22:50 – What ‘Joint Borrower' and ‘Sole Proprietor' Mean 23:36 – Regarding Stamp Duty 24:38 – Lender's Frame of Mind 24:38 – Considerations 25:17 – Example 25:54 – Relationship Requirements 26:30 – Mortgage Term 27:53 – Running Costs of Both Homes 28:27 – Final Thoughts 29:18 – Summary 30:35 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk)   (01:38 – 03:22) Recap We've spoken at length over the past few weeks about the process from the start to picking your keys up. By putting a plan in place and breaking things down this creates a positive experience. Getting on the property ladder depends on income and where we live. There's a huge variance in property prices depending on where it is in the country. For example, London in the southeast and Newcastle in the northeast will have vastly different prices. In this episode, we will be talking about some government schemes that may you help you for if you need it: Help To Buy Equity Loan scheme Shared Ownership scheme Joint Borrower Sole Proprietor (Guarantor Mortgage) (03:23 – 12:58) ‘Help To Buy Equity Loan' scheme The Help To Buy Equity Loan scheme, not to be confused with ISA's (savings account for bonuses), is where the government will help you with an interest-free deposit for your first home. This started in April 2021 and will continue until March 2023 and is for first-time buyers only and means that you must not have ever owned property anywhere in the world before. It will provide you with up to a 40% interest-free loan if buying in any of the London boroughs. Outside of the boroughs this will be up to 20%. You will still have to put 5% of your own deposit in. If you are outside of London then you could be looking up to mortgage worth 75% of the property. Within a London borough, it will be up to 55%. This scheme tends to look at new-build properties. There are three Help To Buy agents split across the country: North (agent one), London & Midlands (agent two) and South (agent three). Go to this website for more info on all of this: https://www.ownyourhome.gov.uk/ (https://www.ownyourhome.gov.uk) I would recommend speaking with a mortgage advisor from the early days. They will be able to go through affordability calculations. This will be a bit different to a standard mortgage. Mentioned before, there's no interest for the first five years. After this, you would pay interest on the 20-40% equity loan starting at 1.75% interest and then increasing over time. One thing I want to make clear: if you are lent an equity loan of however much percentage of the property, the amount you owe is subject to the value of the property at the point of which you want to pay it off. This means that if the property becomes more...

On this episode of the ReadytoBuy podcast, we will be discussing some things you can do to help prepare yourself for when exchange happens between you and the seller, before the moment where you can finally say – “It's all yours!” Time Stamps PART ONE 00:00 – Introduction 01:38 –  ‘It's All Yours!' & Recap 02:50 – Preparation 03:24 – Visit the Property 03:44 – Measuring Up 04:04 – Understand What's Saying and Going 04:45 – List of Addresses 06:14 – Royal Mail Redirect Service 06:45 – Budgeting 07:22 – Ordering Furniture 08:25 – Moving Your Furniture 09:11 – Work 09:46 – Property Quirks, Neighbours & Parking  11:28 – Exchange 11:54 – Deposit & Completion Statement 12:49 – ISA's & LISA's 13:42 – Home & Life Insurance INTERMISSION 14:17 – ‘Definitely Not A Silly Question' Segment 14:46 – Question 14:56 – Answer 15:49 – Contact Info for Questions 16:14 – Risk Warning PART TWO 16:52 – Completion 17:14 – The Big Day 18:37 – Moving In 21:10 – Administrative Things 25:43 – Summary 26:47 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (1:38 – 2:49) Recap Almost there! So far, we have discussed: Putting a plan in place, the importance of help from the start and where you are trying to get to. Getting yourself as presentable as possible and the small tweaks that can make a difference Going out and viewing properties and getting accepted for a mortgage. Starting to organise the mortgage and the legal work that will be involved. How there will be a lull in place as everything gets underway, which is where we can organise your protection. And now we are very close to completion and you picking up your keys.   (2:50 – 11:27) Preparation But before this last step happens, I'd like to talk about a few things to prepare yourself for exchange that you may not have considered, purely because you haven't bought property before. Visit the property as many times as you need to. There's no limit and it's a really good idea to just go back and check again to see what it's like. Measure up the property, so when you are putting in furniture you know it will actually fit. Furthermore, understand what is going to stay and what is going to go. Your solicitor and the seller's will be liaising with each other to know this – but you should too. A great thing to do to help with this is to get to know the seller, perhaps even exchange personal details so you can quickly communicate if need be.  Make a list of addresses to change for things like: Bank Car insurance & finance Driving licence Credit cards Loans Work Things will get more hectic as you move on so this is something you should do earlier. You may miss a few, which is natural, but get the main ones like your bank. An idea is to have a spreadsheet where you can quickly update them and it would be safer than a sheet of paper with them all on. As you change address, think about the Royal Mail Redirect service, which will be able to forward your mail to the new address. This only costs a few pounds a month. It's likely you'll already have a monthly budget. If you have, go through it again and ensure you covered everything. Have it all broken down and clear to you. If you don't have exact figures for utilities (electricity, gas, water), you should have a rough estimate. In terms of ordering furniture, make sure this is all arranged around your moving in date. It can take months for some furniture to arrive from the point of ordering so bear this in mind. But just remember: not everything has to be brand new. When moving your own furniture, make sure to plan how you're going to do it. If you haven't got much you may only need a van. Think about if there are any friends that can help you move things...

On this episode of the ReadytoBuy Podcast we will be talking about the very important concept of protecting yourself and loved ones through getting insurance in case anything bad were to happen to you or them. Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘Protecting Yourselves & Your Loved Ones' and Recap 02:58 – Introducing Protection 04:44 – Three Main Areas to Consider 05:07 – First: Life Cover 07:58 – Second: Protecting Your Income 10:54 – Third: Protecting Yourself Against Serious Illness 12:29 – Overall INTERMISSION 14:45 – ‘Definitely Not A Silly Question' Segment 15:13 – Question 15:20 – Answer 16:20 – Contact Info for Questions 16:45 – Risk Warning PART TWO 17:23 – How Insurers Value Their Cover 17:47 – Age 18:20 – Smoker Status 18:51 – Quotations 19:14 – Medical Questionnaire 19:43 – Acceptance Terms 20:19 – Reviewing 20:56 – Protecting Your Home 22:23 – Insurance for Buildings & Contents 23:52 – Excesses 24:42 – Summary 26:03 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (01:38 – 2:57) Recap You've come a long way in the past few weeks. You will have by now: Put a plan together Got yourself more presentable Found a new home Had your offer accepted The mortgage being organised and legal work being carried out We said about a ‘lull in proceedings.' You've already done so much and now things are going on behind the scenes. This is normal and a really good time to take a breath and think carefully about protecting yourself.   (2:58 – 14:44) Protection However, life doesn't always go according to plan and unfortunately, as we have all seen and experienced, there can always be bumps along the way. For example: Poor health  Serious or long-term illness Accidents Death We can't stop things happening, but financially struggling will make things a whole lot worse than they need to be. This is why it is so important to understand and consider your options. A few minutes now, and a few pounds a month, could make an enormous life-changing difference! In the case of things going awry, a mortgage broker will review your options, usually without any cost. All of our situations are different, so there is no “one-size-fits-all.” There are three main areas to consider of differing priorities: Life cover Protecting income Protection against serious illness Life Cover Does what it says on the tin. If you were to pass away, it would give a lump sum or regular income to your survivors that may depend on you financially. It's not just children, often it could be a partner as well. This is beneficial because it will provide security to those that remain and they will be more at ease knowing they will keep a roof over their head and can grieve in peace. With children, regular income from insurance cover to compensate for you no longer being around would provide relief to them and your partner who could potentially be heavily burdened by the sudden loss of income. Thankfully, life cover is one of the cheapest costs, because loss of life rarely occurs. Despite this, however, many people don't have any in place and I would implore you to get it because it is so important and worth it for a few pounds a month. Protecting income Depending on the type of job you have, this will determine how much you get paid. There's a misconception that if you are unable to work, your company would continue to pay you. Unfortunately this isn't the case. Most companies, small or large, won't be able to compensate indefinitely. Statutory sick pay is just over £400 per month, as of the time of recording. This a massive shortfall for income considering how much you usually need to fund everything going on in your life! When you have protection on income,

On this episode of the ReadytoBuy Podcast, we will be discussing what your solicitor will be doing for you behind the scenes, and interviewing special guest Callum Robertson from EMG Solicitors! Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘What Does My Solicitor Do?'  05:09 – Interview with Callum from EMG Solicitors – Part One 06:09 – What Do You Do? 06:35 – ‘To Begin With' 08:11 – Opening Up a File 09:59 – Memorandum of Sale 11:31 – Searches 14:05 – Being Happy With the Condition 15:56 – Importance of Completing Paperwork INTERMISSION 17:24 – ‘Definitely Not A Silly Question' Segment 17:53 – Question 18:03 – Answer 18:48 – Contact Info for Questions 19:14 – Risk Warning PART TWO 19:51 – Interview with Callum from EMG Solicitors – Part Two 20:27 – Exchange of Contracts 22:20 – Reassurance Prior to Exchange 23:26 – What Do You Need From Clients Prior to Exchange? 23:57 – 10% Deposit 24:51 – ‘A Key Milestone' 25:26 – Releasing the Funds & Moving In 27:33 – ‘Behind the Scenes'  30:02 – Any More Nuggets of Wisdom? 31:55 – Summary 33:43 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (01:38 – 05:08) What Does My Solicitor Do? They will be with you for the next few months and so it is important to choose well. There are many good ones and it is something you can control. Take recommendations from your professionals' help and look at online tools to see how other people have fared. Think about questions like: Are they proactive? Are they easy to get a hold of? Are they good at communicating? There is a huge variance in costs when it comes to solicitors/conveyancers. Sometimes in can be double. It is a good idea to get two or three comparisons just to sense check. I would be wary of ‘panel solicitors,' that are set up to deal with many clients at one time. You will be one of thousands of other people they process and so the experience can feel a bit impersonal and you might not be able to contact the right person. (05:09 – 17:23) Interview with Callum from EMG Solicitors – Part One What do you do? For most, buying a home is the biggest purchase they'll make in their lives Often, they come to the solicitor after seeing estate agents and properties. They will then come ask all sorts of questions relating to how they will purchase the property. The solicitor will discuss with the seller to get an idea of what everyone's aiming for. On average it will take 6-8 weeks, but is subject to whatever the seller must do. From the initial conversation,  the solicitor opens up a file and sends out a Client Care Letter and a questionnaire which acts as a guide to understand who the person looking to buy is. The solicitor will need to establish how to withdraw the money in order to obtain any bonuses. (Such as gifted deposits) In general, they need to know who the client is and where their money comes from. Things may change such as needing to go with a different mortgage offer, lender, property, etc.. There's no need to panic if this does happen. Behind the scenes, the estate agents will be establishing that the buyer has a Mortgage-in-Principle (Agreement-in-Principle) and issue a memorandum of sale to the solicitor to confirm who the buyer, seller and representing solicitor is. There isn't a timescale for this; it may happen within days or could be weeks. At this point, the solicitor has a good amount of info about the property.  They will ensure the legal title is as it should be and carry out various searches: Environmental searches to ensure there are no contaminants in the surrounding area. Water and drainage searches to check that plumbing is correct and no sewage runs near. Local search –...

On this episode of the ReadytoBuy Podcast, we'll be looking into how to get the process started now that you have found your new home – starting with mortgage applications. Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘New Home Found – Let's Get the Process Started' & Recap 02:26 – What is Next 03:16 – The Mortgage Application 04:04 – Repayment Mortgage 04:40 – Mortgage Term 06:33 – Type of Rate 06:51 – Fixed Rates 08:26 – Other Rates 09:11 – Starting the Mortgage Application 09:35 – Providing Property Details to Broker 10:10 – Documents 10:38 – Proof of Deposit 12:47 – Options Will Be Updated INTERMISSION 13:35 – ‘Definitely Not A Silly Question' Segment 14:04 – Question 14:14 – Answer 14:51 – Contact Info for Questions 15:17 – Risk Warning PART TWO 15:55 – Proceeding with Mortgage Application 16:35 – Three Things Mortgage Lenders Look At 17:09 – Lenders Service Levels 17:36 – ‘Instructing' a Survey 18:15 – The Valuation 18:15 – Charge and Purpose 19:01 – Types of Survey 20:28 – More Detailed Survey's & Homebuyer Report 22:48 – The Mortgage Offer 24:49 – Summary 25:49 – Conclusion –––––––––––––––––––– Notes (00:00 – 01:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (01:38 – 02:25) Recap You've put your plan in place – so understand how much you can borrow, how much you need to save, your deposit (savings or gift from family), where you're looking to buy and what type of property. You'll have taken steps to get yourself as presentable as possible. You'll have your Agreement-in-Principle. You'll have prepared for your viewings and we talked to Andy at Robinson, Michael & Jackson Estate Agents last time, with some hints and tips to consider.   (02:26 – 13:34) What Next Two main parts to the process: Organising your mortgage The Legal Work / Conveyancing (We'll discuss this in detail during the next episode) Mortgage Application As previously mentioned, you don't have to proceed with the lender you obtained an Agreement-in-Principle from, it's important to revisit your options and proceed with the most suitable and competitively priced lender (from those available to you). Understanding the Types of Mortgages Repayment Method This will be a ‘Repayment Mortgage' (otherwise known as a Capital & Interest) Term – i.e. duration you repay the mortgage over; the longer the term, the lower your monthly payments and vice versa Maximum term up to 40 years (subject to your retirement age). It's important to consider your circumstances Rate Type You'll have an initial period on a “special rate”, most commonly for 2, 3 or 5 years Fixed Rate Fixes your monthly payment for a set period (2, 3, 5 years for example), to help you budget and know what your outgoings will be each month. You can choose the duration of the fixed rate and it's important to take your own plans and circumstances into account. For example – moving in with a partner for the first time of living together. It may not be sensible to tie yourselves in for 5 years, just in case it doesn't work out. A shorter term such as 2 years may give more flexibility to review. Variable Rate A number of different types of variable rates, including tracker, discounted and variable rates. Essentially these rates can go up or down and so give you less certainty around your monthly payments Trackers rates – would be set against the Bank of England Base Rate, meaning they would be set to a certain differential above or below the base rate (1.0% above, for example) and would move up or down accordingly.  Starting the Mortgage Application Provide the New Property Details  Easiest to share a link to the agent's website or Rightmove, Zoopla page, etc. Most of the property info will be here that your broker will...

On this episode of the ReadytoBuy Podcast, we talk you through how to successfully search for your new home, with insight from guest estate agent Andy Plaistowe. Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘The Search for Your New Home' & Recap 02:55 – Preparation before you start viewing properties in person 07:31 – Interview with Andy Plaistowe – Part One INTERMISSION 14:53 – ‘Definitely Not A Silly Question' Segment 15:22 – Question 15:32 – Answer 16:25 – Contact Info for Questions 16:51 – Risk Warning PART TWO 17:28 – Interview with Andy Plaistowe – Part Two 22:52 – Summary 24:23 – Conclusion ––––––––––––––––– Notes (0:00 – 1:37) Introduction Introducing the podcast and providing details for listeners on where to contact. Website: https://my.captivate.fm/www.mhcmortgages.co.uk (mhcmortgages.co.uk) (1:37 – 2:54) Recap You've put your plan in place – so understand how much you can borrow, how much you need to save, your deposit (savings or gift from family), where you're looking to buy and what type of property. You'll have taken steps to get yourself as presentable as possible. You'll have your Agreement-in-Principle. (2:55 – 7:30) Preparation before you view properties in person   Before you start making contact with agents, use the tools available to refine your search: Rightmove / estate agents websites: Photos & Descriptions - Try to see past décor / superficial state of property, this can be changed easily and cheaply. Floorplan – understand the layout Virtual tour: Video Virtual / Interactive Tour – allows you to navigate around the property and get a good feel for the layout, size and condition. Get a feel for the local area (particularly if you're looking in an unfamiliar area) Use ‘Google Streetview', visit area in person – several times and at different times of the day. Using all of these, should mean there's no surprises when you visit the property in person! (7:31 – 14:52) Interview with Andy Plaistowe ­– Part One Introduction to Andy Plaistowe, a branch partner at Robinson Michael & Jackson Estate Agents: https://www.robinson-jackson.com/ (https://www.robinson-jackson.com/) Not very much has changed in the Property industry in 25 years.  Currently shortage of property, which has meant demand is outstripping supply. Important preparation before getting in touch with estate agents: Get finances in place. (i.e. Agreement-in-Principle – get help from mortgage advisor to obtain) If not, it could result in real disappointment if you can't actually afford a property that you see and fall in love with. Commonplace now that sellers and estate agents won't allow people to view properties without an agreement in principle. Often find that the person with their finances in order will be looked at more favourably than someone who hasn't. Virtual  / video tours – been around for many years, but really come to the fore since the start of the pandemic.  Get a really good feel for a property – there shouldn't then be any surprises when viewing the property in person. Give as much info to estate agents as possible. Demonstrate your commitment to the property by showing them you're serious and that you've done your research by looking at the tools the agent has spent time, effort and money on providing. (Such as virtual tours, photos, floor plan, etc.) Most important steps – calling the agent is key to building relationships with estate agents. They will: Obtain your details. Ensure finances are in place – if not, advise Questions on why you're looking to buy. Agents tend to have a good feel for what's coming to the market in due course, so, by understanding your requirements, they may be able to make you aware of properties before everybody else and before they go live – putting you in a great position. (14:53 – 17:27) Definitely Not A Silly Question Q - “Am I committed to buying a...

On this episode of the ReadytoBuy Podcast, I explain the difference between 'credit scoring' and your 'credit file', why your credit score isn't the be-all and end-all and talk you through obtaining an AGREEMENT-IN-PRINCIPLE, what it is and why you'll need one! Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘Credit Scoring & Your Agreement-in-Principle' 03:15 – The Difference: Credit Files 06:37 – The Three Credit Agencies 09:28 – Monitoring Your Credit File 11:11 – Recommendation for ‘CheckMyFile' INTERMISSION 11:52 – ‘Definitely Not A Silly Question' Segment 12:21 – “Do I have to proceed with the lender that I get the Agreement-in-Principle?” 12:28 – Answer 13:09 – Contact Info for Questions 13:35 – Risk Warning PART TWO 14:12 – ‘What is An Agreement-in-Principle?' 14:12 – Defining It 14:47 – Factors That Make It Up 16:44 – Nature of the Agreement 18:06 – ‘Full Application' 19:25 –  Two Really Important Purposes 20:52 – How Long is it Valid For? 21:30 – Word of Warning 22:21 – Conclusion  –––––––––––––––––– Notes (00:00 – 01:37) Introduction Website: http://www.mhcmortgages.co.uk/ (www.MHCMortgages.co.uk)  (01:38 – 03:14) ‘Credit Scoring & Your Agreement in Principle' Recap of last few episodes - putting your plan in place and getting yourself as presentable as possible. You're almost ready to go out and start looking at properties! But, before you do, I would recommend getting something called an ‘agreement in principle.' (03:15 – 06:36) Your Credit Score & Credit File     I'd also like to discuss the difference between credit ‘scores' and credit ‘files.' Having a good one for both is great, but I would argue that a good credit score is slightly less important than a good credit file. Credit Files Your credit file contains all sorts of information about your credit agreements (e.g. loans, credit cards, car finance, store cards, phone and utility bills) and these will detail things such as payment history, balance, name of the lender, how well you've conducted it, credit limits, etc. It will also show if you are on the electoral roll and address history. Aliases will also show up on the credit file, if you've been known by different names such as maiden names, previous names, etc. If you've ever had a joint credit agreement or joint bank account with someone, it will show up and link you with that other person, even if you are no longer affiliated. It doesn't mean that it would adversely affect you if they had conducted their credit poorly. Things relating to courts also appear, such as a County Court Judgement. (Also known as a CCJ) Your credit file will follow you and go back for six years. If you miss a payment, for example, that will show up for this length of time and shows the importance of being careful. If you apply for credit, the credit lender can request to see your credit history to make a decision on whether they would like to lend it to you. There are two different kinds of credit search ‘footprints' that I see – a ‘soft' footprint search and a ‘hard' footprint search. The difference between these is simply that a soft footprint CANNOT be seen by a credit lender whereas a hard footprint CAN. (You can see all searches, soft and hard, when you view a copy of your own report) A one-off hard footprint credit search isn't usually a problem, but multiple on your record in quick succession may show that you are desperately trying to access credit, which in turn could reduce your chances of being accepted by a lender. (06:37 – 09:27) The Three Credit Agencies The three main credit reference agencies in the UK are: Experian, Equifax and TransUnion. These are all separate entities that hold info about you that credit lenders share with them. It's important to note that the three agencies use a different score to each other, so your credit score would vary depending on which agency you go to....

On this episode of the ReadytoBuy Podcast, we talk you through how to represent yourself in the best possible light. Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘Getting Yourself as Presentable as Possible' 03:58 – Credit Files 04:18 ­– Not Missing Any Payments 04:48 – Pay-day Loans 05:47 – Not Taking Out Any New Credit 06:34 ­– Don't Push Credit Cards to the Limit 08:00 – Overdrafts 09:03 – Monetary Disputes 10:22 ­– Addresses and Voters Roll 11:46 – Spending on Luxuries 13:03 – Gambling 14:20 – Separate Accounts INTERMISSION 15:16 – ‘Definitely Not A Silly Question' Segment  15:45 – “Can having no credit commitments mean that I don't get accepted?” 15:51 – Answer 17:06 – Contact Info for Questions 17:32 – Risk Warning PART TWO 18:10 – Being Open with Your Mortgage Broker 19:06 – Get Documentation Ready 19:32 – ID 19:50 – Marriage and Names 20:14 – Scanning of Documents 20:43 – Payslips and Self-employment Documents 22:00 – Bank Statements 24:21 – Concluding Thoughts on Documents 24:58 – Closing Thoughts 25:26 – Conclusion –––––––––––––––––– Notes (00:00 – 01:37) Introduction Website: http://www.mhcmortgages.co.uk/ (www.MHCMortgages.co.uk)  (01:38 – 03:57) ‘Getting Yourself as Presentable as Possible' This is not about physical appearance, rather financial presentation to lender(s). A good metaphor is a lender having a blank sheet of paper and some basic info and using this to decide whether to give you a loan. No one thing will guarantee you get a loan. Marginal improvements on your record is the best way to think. (03:58 – 10:21) Your Credit File Not missing any credit payments is very important! It doesn't necessarily have to be actually missing a credit payment, often it is more to do with late payments. I would advise that you set up a direct debit for your credit card minimum payment so you don't accidentally miss payments. Pay day loans – AVOID these like the plague! These tend to show desperation on your part and demonstrates to lenders that you are either struggling financially or, at best, cannot manage money well. Try not to take any new credit when approaching mortgage time as it can be seen as a negative if you're increasing your debt at a time when you're trying to paint yourself in the best possible light. Don't push credit cards to the limit. As a first-time-buyer, you have no mortgage conduct to demonstrate you're good at managing a large credit commitment, so you need to demonstrate you can manage the credit commitments you do have. If you max out credit cards, it shows you may be living beyond your means or that you are not good at managing your money. If you have spare money, start paying off or reducing any debts. This will show on your credit file and looks good. Many people treat overdrafts as their own money, but they are borrowed money and are meant to be there as a safety net. If you go into your overdraft too much, lenders may look at this as overspending. Don't default on payments that are owed, even if you are disputing an amount owed. We've seen this quite regularly, yet it's your credit file that gets negatively impacted by having a default (failure to pay loans) or county court judgement against your name, not the mobile phone company you're arguing with! These entries on your credit file could prevent you from getting a mortgage and will remain on your file for up to six years! (10:22 – 12:21) Your Address With online banking, paper bank statements are not as common and so address changes often get overlooked. However, my advice is to always keep your address up-to-date on your credit agreements. Even if you don't partake in elections, get yourself on the voter's roll (electoral role). This doesn't cost you anything, yet can be a deal-breaker for some lenders if you're not on there! (11:58 – 15:15) Spending & Bank Statements Cut back on excess spending on things like new...

On this episode of the ReadytoBuy Podcast, we take you through your very first steps in beginning to buy your first home! Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘Where Do You Start?' 01:45 – Opening Statements 04:28 – ‘Where Do You Start?' Continued 05:02 – ‘Biggest Advice That I Can Give You' 05:15 – First Option for Getting a Mortgage 06:51 – Second Option for Getting a Mortgage 07:54 – Third Option for Getting a Mortgage 08:33 – Context for Expertise on Previous Options 09:40 – What a Mortgage Broker Does INTERMISSION 11:04 – ‘Definitely Not A Silly Question' Segment 11:34 – ‘Two different banks have offered me different mortgage amounts – why is this?' 11:42 – Answer  12:32 – Contact Info for Questions 12:58 – Risk Warning PART TWO 13:34 – Main Questions for Mortgage Plan 14:46 – First Question: How Much Will You Need? 14:46 – Deposits 16:15 – Buying Costs 16:28 – Stamp Duty 16:41 – Solicitor/Conveyancer 17:08 – Estate Agents 17:35 – Surveys 20:04 – Mortgage Arrangement Fees 20:51 – Mortgage Broker Fees 21:50 – Second Question: How Much Can You Borrow? 21:50 – Factors 23:11 – Monthly Budget 24:08 – Summary of Previous Things 24:37 – Third Question: What Can I Afford to Buy? 25:32 – Conclusion –––––––––––––––––– Notes PART ONE (00:00 – 01:37) Introduction Website: http://www.mhcmortgages.co.uk/ (www.MHCMortgages.co.uk)  (01:38 – 05:14) ‘Where Do You Start?' There's lots of information that can complicate things. Don't listen to unqualified 'advice'. Think about it like a car journey - break it down bit by bit and have a plan in place. Buying first home should be a positive experience. Biggest advice I can give is to understand all your options. (05:15 – 09:39) Options First option (worst): Lots of people get with a bank early in life and then remain faithful to them when buying their first house. This is only one option and narrows down opportunities significantly. Second option (better): Go straight in and look for properties online, and with estate agents, and then fall in love with a property without consideration for the mortgage and what's achievable. A bit back-to-front and the estate agent may control who your adviser is. This option is a little better but still restrictive. Third option (best): As early as possible, find a whole-of-market mortgage broker that can search through all of the lenders across the market to ascertain all of your options, including who will grant you a mortgage, lend you enough for your needs, and has the most competitive rates for your situation.  My expertise encompasses having studied for an economics degree at university, being an adviser for Abbey National (now Santander) for many years, working as a whole-of-market mortgage broker at MHC Mortgage & Protection Ltd., and also having been a client myself! (09:40 – 11:03) What a Mortgage Broker Does They explain the process in simple terms, putting a plan together and talking you through from the very start, to picking up your keys as the proud new owners, and then beyond. They ask questions and gather documentation such as: income, bank statements, identification, etc., from you.  They will establish what your goals are and then liaise with people like estate agents, solicitors and lenders on your behalf, taking the burden of paperwork as well. INTERMISSION (11:04 – 13:33) ‘Definitely Not A Silly Question' Segment Q) Two different banks, two different amounts. Why? A) They are separate businesses and will make decisions based on data from previous clients to decide on how likely they are to get their money back. They will look at all sorts of financial history from you and come to a decision on the amount. Higher amounts mean they are more comfortable lending money to you. How to contact me with questions:...

The 'ReadytoBuy' Podcast - THE podcast for busy young professionals to help get yourself and keep yourself READY TO BUY your dream home. During Season 1, we'll be providing practical tips and guidance for all of you looking to buy your first home, whilst talking you through and de-mystifying the process. I'm the host, Mark Humphrey - founder of MHC Mortgage & Protection Ltd - and with over 20 years of experience in the Mortgage Industry, I help people like you buy your dream homes on a daily basis. The ReadytoBuy Podcast is available on any podcast app, including Apple Podcast, Spotify, Google Podcasts and Amazon. You can subscribe at www.readytobuypodcast.uk. –––––––––––––––––– Mark Humphrey CeMAP, Director | Mortgage & Protection Consultant MHC Mortgage & Protection Ltd Tel: 01227 807087 l Enquiries@mhcmortgages.co.uk http://www.mhcmortgages.co.uk/ (www.MHCMortgages.co.uk)  MHC Mortgage & Protection Ltd is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales - 12067840 – Registered address - 13 Aurum Close, Whitstable, Kent. CT5 3FN