How Do Buy to Let Mortgages in Middlesbrough Work?

The Financial Conduct Authority does not regulate some types of commercial or buy to let mortgages in Middlesbrough.

In the world of mortgages, there are many different routes that a property purchaser can take. From first-time home buyers taking their first steps onto the property ladder, to homeowners’ remortgaging, holiday lets, and HMO’s. Depending on the situation there is a lot you can achieve on your mortgage journey.

One mortgage area we often encounter when we speak to new or experienced landlords is a buy to let mortgage in Middlesbrough.

What is a buy to let purchase and mortgage in Middlesbrough?

A buy to let in Middlesbrough will be classified as an investment property, which means that you are prohibited from living in it personally, it is only there for profit. If you have privately rented in the past, you will have been living in a property with a buy to let mortgage attached to it.

For a property to count as a buy to let in Middlesbrough, it must be intentionally mortgaged with the landlord making clear their plans to rent it out, and not live in. The tenant will pay rent monthly, which should be able to cover the monthly mortgage costs, as well as a little more.

Am I eligible for a buy to let mortgage in Middlesbrough?

There are many different routes that you can look at to figure out whether you are eligible for taking out a buy to let mortgage in Middlesbrough. Some of these routes can include the type of property you are looking to purchase, how old you are, as well as if you are an experienced or first time buyer, buy to let landlord.

The biggest factors a mortgage lender will consider are your affordability, minimum deposit requirements, and current credit score status.

Affordability

So that you can prove your eligibility for taking out a buy to let mortgage in Middlesbrough, you must first prove your affordability to the mortgage lender. Many mortgage lenders will have their basis for this centered around your projected rental income.

The projected rental income is the amount your mortgage lender believes you should charge in rent to cover all your monthly mortgage payments, as well as additional funds. They will have a specific requirement for this, and the mortgage lender will calculate it with the value of the property.

As well as using what they deem is the projected rental income, some buy to let mortgage lenders will also have their own minimum income requirement, which is typically around £25,000, though this is entirely dependent on the mortgage lender you will be borrowing from.

Here at Middlesbroughmoneyman, we have experience in working with buy to let mortgages in Middlesbrough. Our mortgage advisors in Middlesbrough will help you find the most suitable mortgage lender for your plans and the most suitable mortgage deal.

Minimum Required Deposit 

As is generally standard with most purchases, you must put down a deposit for a buy to let mortgage in Middlesbrough. Generally, the minimum for this is about 20-25% of the value of the property, although this may vary depending on your mortgage lender.

This is so that the mortgage lender has a reduced risk. With a much higher deposit, you borrow less money from your property. This, in turn, will open you between a loan of 75-80% to value, giving you access to much better interest rates.

If you do fall into the category of a high risk purchase, say if you’re looking to take out a buy to let mortgage in Middlesbrough with bad credit, you may be asked to put down a deposit that is even higher than that.

Credit Score 

You may be eligible for a buy to let mortgage in Middlesbrough even if you have a low credit score or a history of bad loans, although your choice of mortgage lenders will be greatly reduced. There are plenty out there, who may not even lend at all to someone with bad credit.

For mortgage lenders who are still willing to help customers in these kinds of situations, they will look at factors such as how serious your bad credit is and why it is that way. You may also need to put down a larger deposit.

How do I apply for a buy to let mortgage in Middlesbrough?

Before you apply for a buy to let mortgage in Middlesbrough, you will of course first need to find a property on which you would like to make a purchase on.

Next, book a free mortgage appointment and speak with an expert buy to let mortgage advisor in Middlesbrough, as they can confirm whether you are eligible, find the most suitable deal out there for you, and supply you with an agreement in principle.

At this stage, you will have the freedom to make an offer on this property, which will start your full mortgage application process, provided you have accepted your offer.

What type of buy to let mortgage in Middlesbrough could I apply for?

You will find that most people will take out their buy to let in Middlesbrough as an interest-only mortgage. This means you only pay interest per month, which will lower your monthly outgoings.

Once your term has reached its conclusion, you will owe the capital balance that remains. This is usually paid off by selling the property or taking out a remortgage and moving it to a repayment mortgage. You may also need to set up a repayment vehicle to cover the cost.

Whilst an interest only mortgage tend to be more tax-efficient and popular of the mortgage types for a buy to let in Middlesbrough, you are still also able to take out repayment mortgages on your properties. This means that you pay a combination of capital and interest per month.

While this will of course increase your monthly mortgage payments, it will mean that equity in your property can grow. At the end of your term, you would own your property directly without having to pay capital to the mortgage lender.

How much can I borrow for a buy to let mortgage in Middlesbrough?

As mentioned, a mortgage lender will want to stress-test your projected rental income, to review the amount you need to be charging in rent, so that you can cover the cost of your monthly mortgage repayments.

As mentioned previously, a mortgage lender will want to stress-test your projected rental income, to review the amount you need to be charging in rent, so that you are able to cover the cost of your monthly mortgage repayments.

In terms of the amount, you want to borrow, you are not limited if your projected income can cover the amount, you are asking for. That said, a mortgage lender will want your projected rental income to be more than your monthly payments by a certain amount.

What documents are needed for a buy to let mortgage in Middlesbrough?

For you to be able to apply for a buy to let mortgage in Middlesbrough, you will also need to give your mortgage lender a selection of documents before you proceed. This usually includes proof of your income, deposit, ID, address, bonuses and commissions, and your current or last P60.

Any self employed mortgage applicants, will usually need to provide your SA302 tax returns. Existing landlords may also be required to give proof of rental income, which usually comes in the form of an ARLA-regulated report, as well as a mortgage statement of all your existing properties.

Before taking out a purchase to let the mortgage in Middlesbrough, you will find that your mortgage application is progressing much faster than it would otherwise have. 

Are there any additional costs included with a buy to let in Middlesbrough?

Of course, as would be the case with any mortgage, you will have basic costs. You will obviously need to put down a deposit, so that is a larger cost. Then there are other costs like mortgage arrangement fees, application and broker fees, and monthly mortgage payments.

Also, you may have other fees you will need to pay. Some of the most common fees you pay include valuation, product, and mortgage exit fees. Additionally, there may be solicitors’ fees and disbursement fees, as well as stamp duty.

Here at Middlesbroughmoneyman, we can provide more accurate mortgage advice in Middlesbrough on the potential stamp duty rates you will be paying. If you ever want to leave your purchase to let Middlesbrough early, you may have to pay an early repayment fee (ERC), which can be quite expensive.

Finally, you need to think about the types of costs that go beyond what you would already pay. Landlord insurance is also something that you will have to think about, as well as any letting agent fees, income tax and the general upkeep of the property, such as making repairs.

Depending on the mortgage lender and your personal and financial situation, all the different costs associated with buying to allow mortgages in Middlesbrough may vary. Not all of this will be considered, although your mortgage advisor in Middlesbrough will make sure you are aware of all the costs involved.

Can I remortgage a buy to let in Middlesbrough?

You can indeed, you can always remortgage a purchase in Middlesbrough. We tend to find most landlords looking to take out a buy to let remortgage in Middlesbrough as a way of releasing equity from the property, with the intention of putting a deposit down on another property.

The equity that is in your buy to let property will work slightly differently than a standard residential property, if you currently have an interest-only mortgage. Normally, your balance and interest will decrease together, creating a much larger value and balance gap.

If you only have an interest to buy to leave Middlesbrough, only interest will decrease. This means that the equity of your property depends on the amount of deposit you have deposited and what the value of the property is now. Speaking of interest only mortgage, you may wish to also pay the capital balance as well.

To do this, you would remortgaging your interest only to let the mortgage in Middlesbrough on a repayment mortgage, which would increase your monthly mortgage payments but give you the opportunity to pay capital and interest at the same time.

If I am a first time buyer, can I get a buy to let mortgage in Middlesbrough?

Though you may have limited options, it may be possible to get a buy to let mortgage in Middlesbrough as a first time buyer in Middlesbrough. When you look at the first time buyer buy to let mortgage options, your deposit will need to be greater, so that you can borrow the amount you need.

Additionally, please also bear in mind that in doing this, you would lose out on other benefits that first time buyers would get, such as stamp duty, because it is not a main residence for you and generally, buy to let landlords will be paying stamp duty.

For many first time buyers in Middlesbrough, becoming a landlord can actually be a really useful way to give a boost to your income, prior to affording a mortgage of your own on a residential property that you would like to live in.

Always remember that in situations like these, a mortgage lender will assess you on your second purchase, knowing that you already have a mortgage to your name, which in turn could affect future affordability or reduce how much you could borrow. 

Can I Have a Second Mortgages in Middlesbrough?

Can I have two mortgages in Middlesbrough? | MoneymanTV

Here Malcolm has put together a helpful video guide and discusses the significance of why people choose to take out a second mortgage in Middlesbrough.

Depending on the situation you happen to be in, it may be possible to take out a second mortgage. In this article, we will address the reasons as to why you would want to take out a second mortgage and how to go about this.

Potential or existing landlords in Middlesbrough obtain a second mortgage to buy an additional home or look into taking out a buy to let, allowing this to run alongside their current mortgage. Alternatively, you may have the option of a second charge, where you take out an additional mortgage amount against the same property with a different mortgage lender.

Why would you take out a second mortgage?

There are various circumstances as to why someone might find themselves needing to have more than one mortgage. We’ve come across some fairly common scenarios, with these including, but not limited to:

We feel it’s essential to let you know that we have a vast wealth of knowledge on buy to let mortgage advice in Middlesbrough, having worked with many types of lenders, each with their lending criteria.

Raise Additional Funds

If you have equity in your home, you may have the option to take out a second charge to release this equity and fund the deposit for potential additional purchases.

The way a second charge works is that if you still have equity sitting in your property, you may be able to take out a mortgage with a second lender to release some of the equity in the property.

Usually, if you are on a lenders standard variable rate, we can shop around for you and find a more competitive deal whilst also releasing capital. A different approach with your existing lender may have an alternative option available to you.

Second Mortgage to Rent Out Existing Home to Purchase a New One

We tend to find some homeowners looking to keep their existing property, rent it out, and take out a second residential mortgage on a new property. This process is known as a let-to-buy mortgage.

Second Mortgage to Purchase a Home For Your Children

Sometimes your family may need that extra support to help put their foot onto the property ladder. As such, we regularly see homeowners using either a second charge to release some equity to gift them a portion of or the total amount for a deposit.

Second Mortgage for a Buy to Let

Many landlords are looking to purchase additional buy to let properties add to their portfolio by taking out a second buy to let mortgage in Middlesbrough

Named on an Existing Mortgage & Want to Purchase a New Property

Some homeowners have their name on another mortgage and cannot get their name taken off; you may still want to apply for a mortgage of your own. For more information get in touch and speak to our mortgage advisors in Middlesbrough regarding sole name mortgage advice. 

Speaking to a Specialist Mortgage Advisor in Middlesbrough

If you are looking to get a second mortgage, we may be able to help. We can book you in for a free mortgage consultation, following up to find you the most suitable product for you based on your situation. Get in touch, and speak with a dedicated mortgage advisor in Middlesbrough today.

Which Property Survey Should I Choose in Middlesbrough?

The Different Type of Property Surveys | MoneymanTV

Property Survey Mortgage Advice in Middlesbrough

Which type of survey to consider?

Regardless of your mortgage scenario, if you are a first time buyer in Middlesbrough and have had your offer accepted on a property, the next step is to arrange a property survey to confirm your property’s condition and find out whether or not it’s worth what you’re paying for it.

Our qualified mortgage and protection advisors will help you choose the right survey for your situation and the type of property you are purchasing. Please feel free to get in touch, and we will be happy to help.

What is a property survey?

A property survey is a comprehensive review of a property’s condition. It’s a property surveyor job to go out to the property and examine its suitability for the homeowner to live in; they will produce a report highlighting any dilemmas with the property. These problems vary from internal to external. 

The issues could be severe or easily rectified with a potential small fee, but you will need to get a property survey either way. The surveyor report will also feature expert commentary on the property, from the type of wall to the kind of window glazing.

The three main types of property survey are:

  1. Mortgage Valuation
  2. Homebuyer’s Report
  3. Full Structural Survey

What is a mortgage valuation?

A mortgage valuation takes a brief looks at your property to assess how much the property is worth to your mortgage lender. Your mortgage lender will usually insist on using a company they trust, and you will have to pay for it.

The cost of a mortgage valuation varies depending on the size of the property. We tend to find; some mortgage lenders offer free valuations as part of a deal. 

What is a homebuyer’s report?

This survey will cover structural safety and highlights problems, including damp and anything that doesn’t meet current building regulations.

You will receive an independent report of your property by an expert. It is advisable to ask the mortgage companies surveyor to carry out this report for you, and it will take a couple of hours to complete depending on property size and condition.

What is a full structural survey?

This survey is advisable for older properties and those of non-standard construction. Depending on the property size and type – a full structural survey can take as long as a day to complete.

A full structural survey provides a detailed report on the condition of the property and highlights issues that the homebuyer should investigate further before going ahead with the purchase, providing you with peace of mind about the state of your property.

How to get a Mortgage if You’re Over 40 in Middlesbrough

Over 40 Mortgage Advice in Middlesbrough

A survey carried out by the Nottingham Building Society showed there was a rise in declined mortgage applications from clients in and over their 40s. When asking customers directly, who had been declined during the last two years, they had stated about how it was due to their age. However, it’s still possible to obtain a mortgage at a later age.  

Our Thoughts

To understand the clients that feel like they are being hard done by, we’d need to look at how the mortgage application process was carried out before computerised credit scoring and increased regulation – when a branch manager or mortgage advisor in Middlesbrough would individually assess personal details and decide whether the application was approved.

If by chance that the application was approved, then there would be the matter of looking at how much was allowed to be borrowed and this would have been expressed quite simply as a multiple of the individual’s gross salary. For example, if you were earning £20,000pa and the Lender’s income multiple was 3.5x then you would be allowed a mortgage of £70,000.

However, what the method didn’t account for was age so it did not matter what age a person was, they could all be allowed to borrow the same amount of money. But this isn’t as fair as it may seem. If we look at two types of cases and compare, we can understand why.

If two applicants were both due to retire at the age of 65 then applicant one would be granted a mortgage term of up to 35 years whereas applicant two only 15 years making their monthly payments much higher. Let’s take the above £70,000 (capital and interest) mortgage and use that as an example, using a notional interest rate of 5%:

So, in this situation we have two identical earners with the same mortgage debt, but applicant two’s monthly payment is quite higher by a considerable amount. But if interest rates were to suddenly shoot up, then the risk of an arrears situation occurring is greater for applicant two than applicant one.

Therefore, modern mortgage calculators now consider the maximum term of the mortgage, e.g. your age as well as your income and expenditure.

It’s not so much that older first time buyers in Middlesbrough customers are being turned down as such, but that they are being told that they are able to borrow less than what they had in mind. Of course, the irony of this situation is that we are constantly being reminded that we are going to have to work until a later age by the Government before qualifying for a State Pension. Although Banks don’t seem to be taking this into account when granting mortgages, this is something we’re able to explore further.

Why It’s Hard to Get a Mortgage Over 40 Years Old

Firstly, there are some occupations with manual work involved where a person is unable to physically able to work up until a certain age.

Also, the Lenders are closely monitored by the Regulator in terms of repossessions and arrears cases and it can have an adverse effect on them when these occur. Taking a property into possession is a very expensive process which could also lead to bad press that Lenders don’t want or need. They won’t want to be seen kicking an elderly applicant out of their home.

The good news is that Lenders will consider granting mortgages past normal retirement ages if the person is able to demonstrate affordability after they’ve retired. This would normally consist of a letter from their Pension provider with a projection of their future income. An issue here can crop up is that virtually everyone reading this will likely take a reduction in income at retirement.

Therefore, the Lenders will need the applicant to prove that they can afford their mortgage from that reduced income. In practice this hardly ever works unless they require only a very small mortgage – if this is the case, it probably wouldn’t need to be extended past retirement age anyway.

In 2011, the default retirement age was scrapped which led to it that an Employer can’t force a person to retire. Whilst some lenders use the State Retirement age as the age that you must have your mortgage paid off, it has become more normal for them to let you self-declare the age that retirement is intended. Though there will be a plausibility check, so if you are a fire-fighter declaring an intended retirement age of 72 that would likely be knocked back.

With the help of a Mortgage Broker

If you find yourself in this position, there are things you’re able to do. You must prepare to be questioned on the matter of affordability. The consumer protections and regulations are in place to protect consumers and encourage prudent lending. If you need the mortgage term to run past your normal state retirement age you will need to demonstrate how you will sustain payments and provide evidence if requested.

Leasehold Houses Mortgage Advice in Middlesbrough

Leasehold Houses in Middlesbrough

Off the back of help to buy scheme in Middlesbrough, many builders started selling houses on a leasehold basis when traditionally homes had always been freehold. Over time this became a debatable topic at which the Government felt the need to step in.

Some of the country’s housebuilders got pointed the finger of putting profits before their social conscience while they are aware that they need to build homes for families they also have shareholders to answer.

Land Banking

The media had made it publicly known that there was a situation with land banking. Land banking is a real estate investment scheme that involves buying large blocks of undeveloped land with a view to selling the land at a profit when it has been approved for development

Thanks to consolidation, some builders have inherited land into their organisations which is on a leasehold basis. It’s a debatable topic that they offer both leasehold and freehold properties for sale so that buyers can make an informed choice.

What About the People?

Many people had felt that the market had swayed much too far towards leasehold when it came to light how much profit the Builders had been making off the back of the leases.

Things came to a head when the Chief Executive of one of the UK’s most prominent Builders received a bonus of over £100m. At the time, this was one of the most substantial bonuses paid in corporate history.

Some Leasehold Homeowners were shocked when they were being quoted thousands of pounds in fees when they sought permission to make alterations to their homes. The fees were being charged by their Leasehold Management Companies.

Some of the annual ground rents were to double every ten years and owners could see that selling their home in the future once these increases have kicked in would be more difficult.

In Parliament

After notifying their MP’s and getting the subject debated in Parliament, the Government agreed that if you were buying a house (not a flat or apartment), then it is reasonable that you should own the freehold.

What can you do?

If you are in the situation of owning one of these houses and you didn’t realise if it was leasehold, then you should have been made aware. If you feel that the Solicitor acting for you did not give you the full facts about the lease you signed, you should re-contact them immediately to investigate why.

You can contact the freeholder at any time if you are interested in buying the freehold from them. In addition to leaseholds, there is the issue of service charges.

When Councils grant permission for Housebuilders to build on the land, they don’t always agree to adopt the common areas (such as grass verges) and roads.

That means that the upkeep of these areas needs to be outsourced, usually to a private company. The owners in the area then make a financial contribution to this maintenance work on top of their council tax. By the way, this can happen whether the house is leasehold or freehold.

Service Charges

The costs of the service charges can go up, which infuriates homeowners who are affected. Sometimes the residents in the area get together to form an association which might allow them to choose a different service provider.

If you are considering buying a leasehold property, take advice from your Solicitor regarding the lease. It’s straightforward to get carried away with the excitement of purchasing a home, but you also need to realise it’s a significant investment decision that you need to think about carefully.

What is a Gifted Deposit in Middlesbrough?

Gifted Deposit Advice in Middlesbrough

Very handy for first time buyers in Middlesbrough a gifted deposit is when a family member or friend gives you a portion of or all of the 5% deposit. In terms of gifted deposits, here are the answers to a few commonly asked questions.

Who can gift the deposit?

It tends to be the “Bank of Mum and Dad” that gifts the deposit to the applicant and this is acceptable to most Lenders. In addition, your mortgage broker and Lender/Solicitor will be required to see evidence of the build-up of funds and also identification.

There isn’t a maximum limit on the number of gifts you can receive. All you need to do is evidence of where it has come from then the lender shouldn’t have a problem with the gift.

Gifted deposits will mostly be beneficial to a first time buyer in Birmingham or home movers in Middlesbrough.

Can it be a loan rather than a gift?

In almost all circumstances it needs to be a gift and the donor will sign a letter to confirm the funds are non-refundable. They will not put a “charge” on the property you are buying.

Be careful though, taking out a personal loan just before applying for a mortgage will probably have a downward effect on your credit score.

This could lead to a mortgage application being rejected. Also, the monthly payments for the loan will have to be taken into account by the mortgage lender for affordability.

Porting a Mortgage to a new Property in Middlesbrough

Porting Mortgage Advice in Middlesbrough

The majority of high street mortgages which are on the market are portable. A portable mortgage is simply a mortgage that you are able to move from one property to another without paying a penalty. This works out well if you are considering moving to a new house and are currently in the middle of a fixed rate deal because you can potentially avoid an early repayment charge.  

Are all mortgages portable?

It’s important to remember that not all mortgages are portable. If you are looking for a specialist mortgage in Middlesbrough then a Lender might not have the opportunity to port your mortgage. The best way to find this out is to drop a quick call to your Lender to confirm whether or not this is allowable.

Should I port my mortgage?

Even with the availability of porting being available, not all customers choose to do so. Some reasons as to why customers don’t port could be due to factors including Lenders not lending the extra money that a person needs to move or that the additional funds will be on a different rate to the one you have on your current deal. Depending on what new new deal you are offered you might decide to overlook the repayment charge and swap to a different lender.

What is a sub account?

A sub-account will be created onto your mortgage when you port your mortgage and the additional monies end up being on a different deal to the original one. This means that although you only have one mortgage and one direct debit, two different rates of interest apply.

Down the line having sub accounts will lead to the different products overlapping which could get annoying. To get them back aligned at some point will mean one of the sub-accounts having to go onto the lenders’ standard variable rate for a period of time.

We can offer mortgage advice when it comes to porting mortgages. If you are moving house and dealing with a buy to let mortgage in Middlesbrough or require support with self employed mortgage advice in Middlesbrough, booking a free appointment with one of our dedicated mortgage advisors can help explore your options.

The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.

A Guide to Right to Buy Mortgages in Middlesbrough

Right to Buy Mortgages in Middlesbrough

For some time now in England and Wales council house tenants have been able to buy the house they have been living. And in many cases, this can prove to be a substantial discount. The right to buy scheme also applies to Housing Association tenants – is implemented via accessing a special Right to Buy Mortgage in Middlesbrough.

The amount of discount you will receive as a tenant is determined by several factors, such as how long you happen to have been a council tenant for, the cost of the house you intend to purchase and what type of property it is ie a semi-detached house, apartment, studio flat etc.

Advantages of Obtaining a Right to Buy Mortgage in Middlesbrough

The great benefit of this type of scheme is that you are buying a house you have already lived in for some time, is that you don’t have to buy any new furniture or fixtures and fittings since they’re already there.

A further advantage is that if you’ve been wanting double glazing, and a new front door for some time now then you may be able to arrange to get this put onto the cost of your Right to Buy mortgage. That’s because you’ll already have equity available on the property.

Finally, in most cases, there’s no need to save up for a deposit if you qualify for a Right to Buy scheme as the equity already in your property can be used towards your deposit.

The first step towards getting your mortgage is pretty obvious – but it’s a crucial one, and that is to check with the council or housing association that your home is registered with. They will have a record of how long you have lived there and whether you qualify for the scheme.

Next, do some online research to find out how much similar properties in your street or area have sold for recently. That way you’ll be able to get a rough valuation of how much your house is worth. This can be clarified at a later stage with the help of a professional surveyor.

Need Mortgage Advice In Middlesbrough?

At our mortgage broker in Middlesbrough, we’ve been securing the Right to Buy mortgages for hundreds of homeowners. Every experience member of our team knows the process inside out so that your mortgage goes through as smoothly as possible and will be able to offer top-quality mortgage advice in Middlesbrough.

Keen to find out what type of Right to Buy Mortgage in Middlesbrough you can access? Then wait no longer. Simply book your free mortgage appointment today to speak with one of our mortgage advisors in Middlesbrough to discuss the options with you.

What is Mortgage Protection Insurance in Middlesbrough?

What is mortgage protection insurance?

Mortgage Protection Insurance is a term used to encompass various types of cover designed to protect borrowers from events that could severely impact upon their ability to maintain mortgage payments. There are different variations but when connected to a mortgage they are all there to provide peace of mind and usually fall into the following categories:

Life Insurance Advice in Middlesbrough

As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependants aren’t left with a debt they might not otherwise be able to manage. Our mortgage advisors in Middlesbrough are able to run through all the different types of life cover and recommend the most suitable plan for you.

Critical Illness Cover in Middlesbrough

There’s an argument that says that life cover is taken for the benefit of other people – i.e. your dependents – because sadly you won’t be around to see any benefit yourself. However, these days, thanks to improvements in the sort of medical treatment available, many people now survive conditions that once might have been fatal.

Nevertheless, whilst undergoing what may be long spells of treatment and recovery, it could have a marked effect on your ability to meet your financial commitments. This has led to the development of Critical Illness Insurance.

Critical Illness Insurance works similarly to Life Assurance, in that it is usually taken for a specific term of years and can have different options such as level/increasing etc. It is designed to pay out a lump sum and, like Life cover, for borrowers, it is typically taken on a decreasing term basis in line with the reduction of your mortgage balance.

The key is that the benefit is paid if you fall victim to one of several specified critical illnesses, and pays out whatever the long term prognosis of that illness. The type of illnesses covered varies from company to company, that’s why this type of insurance cannot be solely price driven and advice is recommended.

In practice many companies will offer Life and Critical Illness Critical cover as a combined policy and would usually pay out on the “first event” i.e. whatever happens first – either death or a serious illness – the pay-out is made. They can also be written on a single or joint life basis.

Income Protection Advice in Middlesbrough

Whereas Life and Critical Illness cover pay out a lump sum, “Income Protection” pays out a monthly sum designed to replace your wages in the event of you being unfit to work. Unlike Critical Illness coverage, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work.

There are however restrictions on how much you can cover and how quickly benefits would start to be paid. Like Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies are written on a single life basis.

Accident, Sickness, Unemployment (ASU) Cover

Similar in many ways to Income Protection these policies also cover you should you be made unemployed. Benefits are usually linked to your mortgage and other costs (rather than necessarily your wages) and would usually be paid one month “in arrears” after a successful claim.

These policies are only underwritten at the time of a claim rather than at the outset, which can sometimes mean there can be some confusion/delay as to whether a claim would actually be met. They are clearly a useful safety net if you are made long-term unemployed but be sure to check the details of how/when any unemployment benefits would be paid out, as it may be that you would have returned to work before any monies become due.

Family Income Benefit in Middlesbrough

Probably the least common of the “mortgage protection” type policies but can often be valuable – particularly for those with young families. These plans can be taken to cover Life and/or Critical Illness and are underwritten on an application in the same way as mentioned above.

However, unlike the traditional forms of policy, rather than pay out a lump sum, the cover would pay an annual or monthly income for the remainder of the term of the plan. Thus it can replace the income of the main breadwinner for a number of years, dependent upon a particular client’s circumstances and, because of this would usually be written on a level or basis, or an index-linked basis designed to keep up with inflation.

Protection Advisors in Middlesbrough

There’s an old adage that says you can never have too much insurance. Certainly, many people have one or more of the different types of policy and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice.

However, in the real world, affordability plays a massive part, so whilst it would be fantastic to cover yourself for every potential opportunity, a good advisor will sit down with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget.

If you do take more than one type of policy, however, your advisor would usually place all the cover with one provider. This is to save you the additional policy administration charges which individual policies carry but which are reduced when bringing all the policies under one plan.

9 Questions to Ask When Buying a Property in Middlesbrough

First Time Buyer Mortgage Advice in Middlesbrough

Taking that primary step towards becoming a first time buyer in Middlesbrough can be quite a stressful concept, especially if aren’t quite sure of what you need to be doing.

Whilst this is a common thought process, we’re here to reassure you that this doesn’t need to be the case! You should be as prepared as you can be, in order for you to make the absolute most of your home buying experience.

Below we have put together 9 questions that you can ask when buying a house as a first time buyer in Middlesbrough.

The 9 Most Common Home Buying Questions:

1. How much interest has there been in the property/ development?

It’s always good to consider a property before you commit to purchasing it, as a mortgage will likely be the largest financial commitment you ever make.

One thing to ponder, is just how much interest has actually been shown in this property. If it is not quite so popular, you can afford to give yourself time to decide.

If it is a popular property, you may have to make a decision sooner rather than later.

2. Is there a property chain?

A property chain will occur if there are multiple property transactions happening at the same time, relying on every sale and purchase being completed.

If the property you are purchasing is a part of a chain, this can significantly affect your mortgage process.

For new homes that don’t have a property chain, you may have an increased chance in your process moving quicker, as you won’t be waiting on anybody to go ahead.

First time buyers in Middlesbrough especially have the advantage, as even if there is a small chain, they don’t have to sell a property to begin with in order to move in. This is a good thing to mention when negotiating on property price.

3. What’s included in the sale?

You’ll quite commonly find that when you buy some homes, the previous owner will have left a variety of items behind.

Items that can be found left behind, include potentially electronic goods such as washing machines, fridges or freezers, as well as maybe leaving a shed in the garden. This won’t apply to new build properties, as they tend to be built on the conditions agreed upon prior to the work commencing.

The advantage of this for first time buyers in Middlesbrough, is that if you don’t have to purchase the items yourself if they are left behind. The downside is if you don’t want them, you have to pay to get rid of them.

In the circumstance where you buying a new build property, there might additional items you can buy that can be fitted and ready on the day you move in.

4. What are the neighbours like?

Something else you’ll want to consider and may affect your decision, is what the neighbours are like. Are they good or bad, is it a quiet area or are there anti-social locals? Finding this out can be handy ahead of time.

If you are moving into a new build property, then you and your neighbours will be the ones who are building up a new community, which can make it risky as you won’t know what anyone is like in advance.

5. How much does it cost to run?

When it comes to the costs of running the property, it will depend on where the house is. Asking the right questions can help you to learn more about this prior to purchasing a property.

Make sure you find out things like how much the Council Tax generally is, the usual utility costs and things like that. This can help you budget from property to property.

6. Which way does the house face?

The direction that your house is facing can also be a big factor in your decision to purchase a property or not. Some prefer to be able to relax during the summer evenings in the garden, reading a book or having a drink.

South facing gardens often can cost quite a bit more than regular gardens, due to them getting more sunlight than others.

7. How much work will be required after moving in?

This is something else that could be a factor you’ll need to think about, as this could impact your budgeting for the property. Here are some of the most common things to look for;

8. Are you open to offers?

The house buying process will typically start with property price negotiations. It is important that you are as ready as you can be ahead of time, so that you can make an offer on a property that you really like.

If you would like to learn further about the best ways to improve your chances during negotiation, we reccomend you see our guide on how to make an offer on properties in Middlesbrough. As soon as you are “mortgage ready”, contact our team and we can get started with making offers.

The best way we’d say to determine whether or not an offer is potentially too high, we’d recommend having a chat with the seller themselves or perhaps the estate agent, to discuss previously made offers that have been rejected.

9. When can we move in?

Having a date in your diary can help you to plan other tasks you need to do around the big move. You might need to instruct a conveyancing solicitor, pack everything up, move your belongings.

Knowing the date you could possibly move from speaking to the seller will help you to manage all these tasks, being much more organised and much less stressed as your process continues.

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UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

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