Reasons Your Mortgage Application in Middlesbrough Has Been Declined

Credit Score Mortgage Advice in Middlesbrough

Every lender has their way of calculating your credit score. You won’t qualify with every lender as they all require a different credit score criteria. At times, they may be easy to pass, other times they may have stringent policies and you might find it difficult to pass. If a lender has declined your application, you may not have been told why you failed it. In some cases, they might have justified reasoning for failing you, however, some may not have and you won’t be able to find out why.

It’s at this point where you should realise the benefits of a Mortgage Broker in Middlesbrough. We are here to help you and guide you throughout the process starting from the early stages, right through to the end of your mortgage journey. We will never put you forward for a deal when you are going to be declined.

Before meeting a Mortgage Advisor in Middlesbrough, it is recommended that you obtain a copy of your credit report to show to them. They will be able to go through it with you and try to match you with the most appropriate lender according to your case. The more deposit you have available to put down, the easier your chances will be to secure a mortgage.

Improving your credit score in Middlesbrough

Your credit score is one of the most important aspects of your financial situation. It tells lenders how responsible you are. The better your score, the easier it will be to get approval for new loans or lines of credit. A higher credit score can also open the door to the lowest available interest rates when you borrow. There are several things you can do to improve your credit score in Middlesbrough. A few of the important things that you need to focus on are:

  • If you are a credit cardholder, make sure that you pay off your monthly bills on time. 
  • Pay off past due balances. 
  • Pay off any debt etc. 
  • Close down any old bank accounts or store cards as this will help clear up your report.  

If you fail one lender’s credit score, it is not the end of the road, don’t give up! Many lenders prefer to lend to a specific demographic, so just because you didn’t match one lender’s criteria, doesn’t mean that you won’t match another. Although, don’t keep applying to lots of different lenders, as lots of hard credit searches on your file can negatively impact your credit score. 

Declined for a mortgage on affordability 

Every lender has their mortgage affordability calculator to work out how much you can afford to borrow. Some lenders will be more lenient and accommodating, whilst others are more strict and rigorous in their approvals, but that varies from lender to lender. 

An ideal example of this is if you are Self Employed in Middlesbrough, the lender may be more lenient and merciful with you and your application. Some lenders may only look at your base income, overtime and bonuses whereas others may also accept “unearned” income, such as tax credits, child benefits, and maintenance benefits. 

As an experienced Mortgage Broker in Middlesbrough, our advisors have access to over 40 different lenders whom we can approach without the need for a credit check, to perform an affordability assessment. If you are looking to buy a house then we would recommend that you have an affordability assessment carried out before you start looking for properties to avoid any future possible disappointments. Get in touch for more information.

Meeting your monthly mortgage or rent payments helps provide evidence about your credit history but again that does not guarantee that the lenders will pass you in your affordability test.

Outside of lending policy

As we have mentioned before, each lender will have their own lending criteria. Lenders also aim to carve out a niche of their own, so that good quality mortgage borrowers approach them. Here are some examples of why your mortgage application could be denied or has been denied for being outside of policy: 

  • Length of time in employment or if one is self-employed  
  • Poor credit history 
  • Too much debt 
  • Too many credit applications 
  • A married applicant applying for a sole mortgage 
  • Minimum/maximum age or mortgage term 
  • Minimum/maximum loan amount 
  • Not enough deposit 
  • Non-standard property construction 

As a devoted Mortgage Broker in Middlesbrough, we will use our knowledge and expertise extensively to find the best lender based on your situation. It does not matter if your situation is a little bit more difficult, we will still try our best to help you through your process. 
We have been in the mortgage business for quite a long time now and we know exactly how to get over the majority of mortgage hurdles. Feel free to get in touch with a Mortgage Advisor in Middlesbrough and enjoy your free initial mortgage consultation.

Buying a Property with a Friend or Partner?

Property inflation has outstripped wage increases over the years. In order to be able to afford a suitable property many people feel the need to buy with another person. This is because two incomes are then contributing to the payments so the costs are shared and lenders can also take the two incomes into account when calculating your maximum mortgage amount. Although, there are risks to be considered which will be answered throughout this article.

How many people can jointly own a property? 

Some lenders often allow up to four people to jointly co-own a property. If, for any reason, a borrower stops their contributions towards the mortgage payments then any joint owners have a legal right to stay in their home unless a court rules otherwise. Because of this, it’s best to be very aware of who the property is bought with.

If the borrowers wish to increase the mortgage later down the line then all borrowers will need to consent. So this will mean it’s important that long term plans are made should circumstances change or the borrowers end up wanting different things.

Joint Tenancy or Tenancy in Common? 

Most married couples tend to opt for joint tenancy. If either applicant were to die then the property passes to the other owner. If mortgage life insurance has been taken out then the mortgage would be repaid at that point also. Consent will be needed from the other applicant if there is thoughts of selling or remortgaging the property in the future.

Tenants in common is sometimes chosen by relatives or friends that buy together. They will still jointly own the property but are not forced to do so in equal shares. This makes sense more if one party is contributing a bigger financial input than the other.  

An applicant can act individually if they are a tenant in common. For example, the share of the property is able to be sold or given away.

What happens if one party stops making mortgage payments? 

All mortgage borrowers are jointly and severally liable for mortgage payments. If one of the parties stops paying then the other(s) will have to make up for the shortfall to prevent the mortgage from falling into arrears. Any arrears that appear may stop you from getting a mortgage in the future.

Life Insurance Advice | Middlesbroughmoneyman

Life insurance is designed to pay out, usually in a lump sum, in the event of death.  With regards to your mortgage, the sum assured should be enough to pay off your outstanding balance.

Here is some information about the most popular types:

  • Whole of Life Insurance
  • Term Assurance
  • Family Income Benefit
  • Joint Life Insurance
  • Death in Service

Whole of Life Insurance

Whole of life insurance does not have an end date, therefore, providing premiums are being met the policy will pay out.  Generally speaking, this type of insurance is used for family protection and also as part of inheritance tax planning. 

Term Assurance

Term assurance is the most popular type of family insurance used to cover a mortgage. 

Our Mortgage Advisors in Middlesbrough will recommend the sum assured and term of the policy, usually to run in line with your new mortgage.   The providing that all premiums are maintained, the sum assured will be paid out if you were to die during the term. 

There are various types of Term Assurance available, such as decreasing and increasing cover.  As part of our personal protection review, the most suitable policy for your needs will be recommended. 

Family Income Benefit

This is another version of Term Assurance, where instead of the sum assured being paid as a lump sum on death, it’s paid as an agreed monthly payment.  This is very good for families looking to insure an income. 

A good Mortgage advisor in Middlesbrough will usually recommend a mixture of insurance types tailor-made to match your personal and family requirements. 

Joint Life Insurance

If you are part of a couple, you could consider taking out a single life policy that will payout in the event of one of you dying.

This can be cheaper than paying the premiums on two separate policies, but bear in mind that joint policies only payout on the first death, after that the cover ends. 

If you had two separate policies, the second policy would remain in force even after a claim had been made on the first.

Death in Service

Many companies offer their employees family a lump sum payment if the staff member dies while they are employed by the firm.

Although this doesn’t mean the death has to be at the workplace or in any way related to the job done.

This cover will most likely end as soon as you leave the company.

Our Insurance Advice Service

It’s very important to us that all of our customers are given an equal opportunity to take insurance our through ourselves.  We wouldn’t be doing our job right if we didn’t mention it! 

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.  We’ll then recommend which products, including critical illness and income protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget. 

Sales Tactics of Estate Agents & Builders

Sales Tactics | Mortgage Advice in Middlesbrough

Whether you are a First Time Buyer in Middlesbrough actively viewing properties or a Home Mover in Middlesbrough with your house on the market, you may have noticed that some of the larger estate agents and builders are very keen for you to use their in-house mortgage advisor and conveyancing services.

Being part of a stand-alone mortgage business we receive lots of feedback as to what sales tactics can be used, examples of this are;

  • Refusing to put your offer forward to the vendor if you have not taken in-house mortgage advice or favouring another offer over yours because you already have your mortgage sorted.  Please note these situations are illegal.
  • Quoting extortionate conveyancing fees, I recently had a client who was quoted more than £1,500 for a straight forward purchase with an estate agent.  They got this down to £750 with our help by using another conveyancer local to them.
  • From the big well known colourful online agents, within minutes of making your offer they may call you wanting the name of your conveyancer, not just the company, the actual individual acting for you! At the same time pushing their extortionately overpriced quotations, and refuse to take the property off the market without this.   Don’t worry, we can help you be ready for this.

Don’t be fooled, popular Estate Agent & Builder sales quotes include:

“Keeping everything under one roof is easier with one point of contact”

“If you use our services it will give the vendor peace of mind that everything will go through smoothly”

“You need to come in and see our mortgage advisor for your offer to be qualified”

“Your offer is more likely to be accepted if you use our mortgage advisor”

“We get better deals than most brokers”

“Everything is likely to go through quicker if you use us”

“We will do all of the chasing of the solicitors for you and they’ll be more responsive to us due to the amount of work we send them”

“We’ll give you a free carpet/washing machine if you use our (extortionately priced) recommended conveyancing service”

Remember, when negotiating a purchase price, do you really want the seller of your property having access to your personal financial situation and potentially knowing your maximum borrowing.

We are genuinely open and honest and only have your best interests at heart, we’re here to save both your time and money. 

Mortgage Advice in Middlesbrough

Critical Illness Insurance Advice in Middlesbrough

Mortgage Advice in Middlesbrough

Critical Illness Insurance pays out a lump sum if you are diagnosed with one of the conditions on the policy such as Cancer, Heart Attack or Stroke. Sometimes Insurers receive criticism for declining claims when someone is very ill but with an illness not covered on their policy but most major providers actually pay out over 90% of claims.

If claims are denied it can also be because the claimant did not disclose an underlying medical condition they have when they took the policy out.

In the event of a claim the lump sum is paid out irrespective of whether the claimant returns to work or not, the key thing is whether the illness they had matched the definition on their policy.

The claimant can use the lump sum they receive for any purpose they wish. Be this to repay their mortgage, pay for medical care or make modifications to their home.

Different insurers cover different illnesses on their policies and it’s wise to take advice prior to selecting a policy. This will ensure that you end up with one that is suitable for your needs. Critical Illness Insurance is much more expensive than life cover because the chances of you making a claim are far higher.

Your chances of surviving the types of conditions covered are far higher than they were 30 years ago. However, if you are unfortunate enough to contract one of them then there are often financial consequences. Hence the popularity of the cover, especially for applicants who have mortgages or children to think about

Our Critical Illness Insurance Advice Service

It’s very important to us that all of our customers are given an equal opportunity to take insurance our through ourselves.  We wouldn’t be doing our job right if we didn’t mention it! 

We offer all of our customers a free, no-obligation protection review where we’ll have a look at any existing policies you have in place and assess their suitability.  We’ll then recommend which products, including critical illness and income protection that meet your needs.  If required, we’ll then tailor the plan to match your available monthly budget. 

Providing Critical Illness Insurance Advice in Middlesbrough & Surrounding Areas

How to Sell Your Home Quickly | Mortgage Advice in Middlesbrough

Selling your home quickly in Middlesbrough

Most people Remortgaging in Middlesbrough who look to purchasing a new family home will need to progress onto selling their current property to let them move forward in the process. The equity that you receive will be used as your deposit for whatever property you are planning to move into.

There’s always a safe minimum number in which the seller is willing to accept in order to agree to a sale. However, there are factors that can present big differences in the time it takes for the house to be purchased, for example how it is marketed and presented on the market.

Though make sure you don’t aim too high or too low just to guarantee an offer. The offer should tie in with the odds for the area so you shouldn’t just go with the Estate Agent who suggests the highest potential sale price. The way you enter into the market is a pivotal moment to how many viewings you receive. If it seems that you get no initial interest, then there may be a good chance that your property has been over-valued.

Some potential sellers tend to delay from putting their houses onto the market until they have seen one that they are aiming to buy. If you find that this is you and you’re after a quick sale, some tips are provided to increase your chances of selling more quickly.

First Impression Counts

The first tip would be to view your house as if you’re viewing it for the first time as a potential buyer then if something doesn’t look right to you, it won’t look right to another. An advantage for most houses is if they have a good ‘kerbside appeal’ as it creates a first good impression this includes attention to keeping your fences intact and tidying up any outdoor items such as barbecues. A garden full of well-placed flowers does wonders as it can add colour to the outside of the property and can create a more pleasant scent.

If it appears that you look after your home then the potential buyer will be under the influence of thinking that the inside will look just as nice inside as it does outside. Something simple will do the job such as a freshly jet-washed drive or neatly cut lawn to provide the ‘feel good factor’.

The same goes for your front door, make sure to clear any clutter that may be in or around the garden such as children’s bikes and toys, etc. It is important to make sure your front door feels welcome, perhaps it is a good decision to treat yourself to a new doormat whilst you’re revamping.

Tidy, Tidy, Tidy!

Once you’ve got the front out of the way – you can now go room to room. You should focus extra attention to the kitchen and bathrooms.

Your bathroom is a factor most people overlook. Present this room as spotless as you’re able to with items stored out of sight which aren’t in daily use and co-ordination between towels and flannels is a nice added touch.

The idea of ‘space’ is always a way to entice. Anything that is being stored outside of cupboards should be moved to a place out of sight or if it’s not needed… thrown away. As handy as the shed is to store things in for the meantime, sometimes the viewer may want to look inside your shed so make sure not to overfill it with junk – the same goes for your garage if your buyer drives, they’re going to want a decent space for parking.

Interiors are best to look well-kept. Freshly painted doors and polished brass fixtures means that it worn down features of the house become more up to date and will hold a more refreshed appearance. It is also best to tighten up loose screws around the house and make sure that doors and locks move smoothly and efficiently.

A relaxed atmosphere will make your buyer feel more at home so it’s best to avoid having pets or young children around whilst the viewings take place. On the other hand, if it’s a family home which you are selling it can be nice to project that image to the buyer with family pictures. It is also important to remember to offer them space whilst they’re viewing and not to crowd them. If appropriate, let them walk around on their own to provide them with opportunities to talk between themselves.

Well-lit rooms offer a clearer appearance and shows that nothing is being hidden, especially in the darker rooms. All curtains and blinds should be open and all lightbulbs should be working. If you have any interior plants, it’s advisable to trim them down to an appropriate size.

Keep Your House Clean

Overall your house should be immaculately clean. All aspects should be checked over such as repairs and all fabrics should be washed and presented in a well-presented manner including:

  • Curtains
  • Bedding
  • Floors
  • Windows

Plain painted walls create the idea of a place that the buyer is able to personalise, wallpaper should be avoided. A seller should not only appeal to the eye but also a fresh scent or good airing and clutter free spaces create a more open atmosphere for potential purchasers. If something appears to have a funky smell about it that you notice, it’s best to remove it as this can deter potential offers.

People buy from people, so it’s always more appealing if you do the viewings yourself as the seller. You will know the property more than anyone and the best features to show off alongside any small issues that they may need to be aware of to provide a more balanced view. Estate Agents do want to earn their commission but will have limited knowledge about the property you own.  

The projection you offer about your own experience is the main factor when it comes to selling your home. It helps to accentuate this factor to show how you’ve developed an emotional connection to your home and created great memories meaning so will the future buyer, especially if they’re looking for a family home.

How to Make an Offer on a Property in Middlesbrough?

How to go about making an offer?

For First Time Buyers in Middlesbrough during the time that you’re looking at properties you may see a certain one which catches your eye and will make you want to put forward an offer. Putting an offer is a factor in the mortgage process which is just as important as any other step in the mortgage process and needs to be approached carefully.

Whilst you’re looking at properties and wanting to make an offer, you need to remember that other applicants will be searching the market at the same time which makes it so as you need to put yourself ahead of the game. You should make it so as you give yourself the best chances of getting your offer accepted.

If you do have your eye on a property and you have everything organised – you’ll never beat a cash buyer even if their offer is slightly less than the one you proposed as they there will be less complications involved with their process. But luckily, there are not many apparent cash buyers in contemporary settings.

The best thing that will help increase your chances is to prove you’re able to be organised the first step is to send your Mortgage Agreement in Principle to your Estate Agent. If other applicants haven’t already sent theirs off then it will make it so as you are further along in the process. If yours case is straightforward we may be able to offer ‘same day service’ for this documentation.

As is always the case, buying a house is a negotiation process. If the first offer in which you make is accepted then chances are you offered too much. More often than not, your first offer will normally be rejected. But there is no need to worry because after this, you will be asked as to whether you want to increase your initial offer. This means you are able to offer less in the first instance – so don’t be afraid to.

If your second offer goes on to be rejected, then sometimes it just means you may be left with the sole option of being willing to pay the original asking price which happens mostly if the property is relatively new to the market. In some cases, you have to walk away and find somewhere else.

Some property websites such as Zoopla and Rightmove let you see the sold prices to inform you or whether the asking price looks similar to the ones around it. The data shown on these kinds of websites is obtained from the land registry so you can be rest assured it is valid. However, some houses do sell lower than others which are surrounding them but there will be reasons for this.

Some houses if they are being sold lower than you expected, can sometimes be down to such reasons as being repossessed, sold to a sitting tenant at a discounted price or it was an inter-family sale.

If you’re stuck on how to make an offer, we are happy to advise you on how to go about this as part of our service, so please feel free to get in touch.

A Guide to Offset Mortgages in Middlesbrough

Different types of Offset Mortgages in Middlesbrough

A great mortgage option for many that is often one that most consider – Offset Mortgages. These were one of the most popular options available in the 1990s. The reason for this is because people aren’t as good as savings as they used to be. However, if saving is something that is able to be accomplished each month then this type of mortgage may be a good option to look into.

When looking into how offset mortgages work, when you choose to set one up with a Lender, you are given a savings account as well. The Savings account which is set up is one linked to your mortgage. The account may not offer you any interest on your savings but is instead put into place to ‘offset’ against your mortgage balance. For example, if you owe £100,000 on your mortgage and your Savings Account holds £18,000 then you only pay interest on £82,000.

How flexible are they?

Offset mortgages are one of the most flexible arrangements in terms of Mortgage options. You are able to deposit as much money as you wish until the mortgage is completely ‘offset’, whilst you still have instant access to use whenever you wish.  

Due to the fact that the Savings Account doesn’t collect interest as it is connected to your mortgage, also means that there is no tax to pay on anything that is held within it. Which can be handy if you’re a Higher Rate Taxpayer.

There are negative factors involved, as there are with all mortgage options. Offset Mortgages do tend to have slightly interest rates and fees than other alternative options. So, if you aren’t going to make use of the flexible features then a standard mortgage may be a more suitable option.

If you think that you are receiving a lump sum for a particular reason in the upcoming future such as an inheritance, an offset saver would be an appropriate place to deposit the money until you decide on what you will do with it. The same can be said for if you receive annual or quarterly bonuses in your job that you do not rely on.

Consumers who choose to go with Offset Mortgages tend to stick with them and are less likely to go through with Remortgaging. These can be tricky to understand sometimes so when you speak with a Mortgage Advisor make sure to consider all options available before making a choice, as they will go through how an Offset Mortgage may help you in the long run.

A lot of First Time Buyers in Middlesbrough who obtain a mortgage plan to overpay their mortgages but never get around to doing it. This is sometimes because they are nervous about paying too much off their mortgage which could have an adverse effect on their future capital requirements. Once more, Offsets are a great solution for this type of borrower as you’re able to access the money at anytime but each day the savings remain in your account – it’s working in your favour.

How to Get a Mortgage Agreement in Principle?

What is an Agreement in Principle?

What is a Mortgage Agreement in Principle?

A Mortgage Agreement in Principle (AIP) is essentially a document to prove you have a mortgage in place. To the Estate Agent, it proves you are creditworthy as you have passed the lenders credit score. However, it is not a guarantee that you will definitely get a mortgage as a full application will require further background checks.

The Value of a Mortgage Agreement in Principle

How having your mortgage agreed at the outset can help you negotiate on an asking price. A Mortgage Agreement in Principle in Middlesbrough is essentially a document to prove you have a mortgage in place. It is something we obtain for all of our clients and almost all Lenders offer them.

A Mortgage Agreement in Principle is not a guarantee that you will definitely get a mortgage as your full application will require further background checks (such as evidence of income) and a satisfactory valuation of the property itself.

However, it is a good idea to get one done at the earliest opportunity for the following reasons:

  1. Negotiating Power
  2. Avoiding Disappointment
  3. Knowing Your Limits

Negotiating Power with a Mortgage Agreement in Principle

When you are ready to make an offer on a new home most Estate Agents will undertake due diligence and ask you to produce evidence that you have funds available to complete the purchase. This will take the form of bank statements and also an Agreement in Principle certificate that we can provide for you. Once you have provided them with all this documentation the Estate Agent will then normally stop marketing the property and put a “Sold” or “Sale Agreed” board up.

If you already have a Mortgage agreed before you make an offer you are making yourself appear as an attractive proposition as this proves you are not making an offer on a “whim”, you’ve thought about how you’re going to fund the purchase and do something about it. This might persuade a seller to accept an offer you put forward on their property underneath the asking price.

Avoid Disappointment with a Mortgage Agreement in Principle

When it comes to buying a house some clients have always “put the cart before the horse”.  They go full steam ahead and make an offer on a property without first checking that they can actually proceed.  This can lead to terrible disappointment if the mortgage application fails. By that time they have really got their heart set on their new family home. This disappointment can be avoided by contacting us at an early stage.  Sometimes there are things that are causing a mortgage to decline that can be overcome given a little time.

For example, there may be a niggling issue on your credit report, perhaps a disputed mobile phone bill which can be easily rectified. Maybe you thought you were on the Voter’s roll and you’re not – once again that can be sorted out given a few weeks.

Or maybe you can’t get a mortgage at all! But if that’s the case it’s better than you know now rather than mess people about and we’ll be able to tell you what you need to do to improve your credit-worthiness for the future.

Knowing your Limits with a Mortgage Agreement in Principle

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

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

Still, think it’s simple?!

Knowing your borrowing limits is important as then you know for sure what your price range is. We’ll be able to advise you of the maximum mortgage available to you. Also, more importantly, together we’ll work out how much you can afford to pay back each month, we’ve found this is especially popular with the first time buyers in Middlesbrough that approach us.

Agreement in Principle & Soft Credit Searches in Middlesbrough

Credit Searches Explained

More and more First Time Buyers in Middlesbrough these days pay much closer attention to their credit rating. Consumer awareness of credit scoring is higher now than ever before and at least half of the people who contact our Mortgage Broker in Middlesbrough for the first time have already looked at their credit report online.

There are many different credit reference agencies out there, most people will have heard of Experian or Equifax, but we recommend potential new clients to use Check My File for a 30-day free trial, which is £14.99 a month thereafter and can be cancelled at any time. This report “sweeps” several of those reference agencies and collate the information into an easily understandable colour-coded report.

Often, clients ask if we will be doing a credit search on them because they are aware that too many searches can have an adverse effect on their credit score. Lenders always run credit checks but we always seek a client’s permission before doing so. There are two different types of credit searches that Banks can run on a customer: hard searches or soft ones.

What is a Hard credit search?

A hard credit search is an in-depth look at your credit report and any financial institution carrying out one of these should seek your permission to do so. The advantage of a “hard” search is that because the lender is looking into your situation quite closely if you pass the credit score then it’s fairly likely that your application will ultimately be successful. The only thing that can really go wrong from then on is if for some reason you cannot provide satisfactory documentation to back up the information you have disclosed or it turns out you have provided false details.

The bad news about a hard search though is that it leaves a “footprint” on your credit file so that anyone who looks at your report in the future can see you have had a search carried out. This isn’t necessarily a bad thing, but if you have several footprints registered in a short period of time then it could look like you applying for lots of credit at the same time. The footprint does not state whether your application was successful or not but if you have several searches over a few weeks then Lenders’ systems could wrongly assume you are being declined on the basis that “Why else would you go to Lender number two, unless Lender number one had said no?”.

The odd hard footprint on your record from time to time is no big deal so there’s no need to worry too much about this, just be careful not to have too many.

What is a Soft credit search?

A soft credit search is a “lighter touch” look at your financial situation and this is the kind of search that would routinely be carried out on price comparison websites to give you an indication of what products might be available to you, or if someone wants to verify your identity. Some mortgage Lenders do soft searches in the first instance and more and more Lenders seem to be changing to doing this type of search. Whilst the financial institution doing a soft search obtains less information about you than if they had done a hard search, an Agreement in Principle from one of these Lenders is usually still an extremely strong signal that your full application will be accepted.

The really good news about soft searches is that whilst you will be able to see that someone has carried out a soft search on you if you check your credit file, these searches are not visible to other Financial institutions like Banks. This means that you can apply for an Agreement in Principle for a mortgage without it damaging your credit score irrespective of whether it is successful or not.

If you are wanting to make an offer on a property I always think it is an excellent idea to have your mortgage agreement in principle in place prior to contacting the Estate Agent. You want to give yourselves the best possible chance of securing the property you want at the lowest price so if you can present yourselves as having your finances in place then you are definitely putting yourself in a stronger position. Having the Agreement in Principle also sometimes puts the Agent off trying to “cross-sell” their own in-house mortgage services to you. & Middlesbroughmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
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