Expert mortgage advice and broker partnerships, post-bankruptcy

All mortgage lenders have their own criteria. The following factors all play a part in determining their mortgage offer and how much they are willing to lend to you:

• Amount you wish to borrow
• Size of your deposit
• Employment status and income
• Credit rating
• Outgoings
• Existing debt
• Your age
• Length of the mortgage term
• Your credit status
• If you are applying solely or jointly

In order to be accepted, you need to convince lenders that you are able to repay your mortgage. To do this, lenders typically use your credit report to check your repayment history. Your credit file will contain current and existing records on items such as credit cards, loans, overdrafts, mortgages, mobile phone/s, some utilities payments and all accounts opened in the past six years. If you have had arrears, defaults, CCJs, debt management plans or previously been made bankrupt, there are mortgage options available which we can help you with.

Most mortgage lenders will lend you up to five times your salary. However, this is dependent on a number of factors including your age, number of dependants and current financial commitments. Lenders generally work out how much they will lend you based on what you can realistically afford each month after you have paid your bills, credit cards, loans etc.

Our mortgage advisors can help you understand how much you can realistically borrow before an application or credit search is completed, by assessing your individual needs and circumstances. If you choose to proceed with an application, then our advisors will know which mortgage lenders to approach to ensure you get the required loan amount.

When buying a home, you will need to not only have enough money saved for your mortgage deposit, but also your mortgage fees, moving costs and legal expenses. We have compiled a handy list below of all the possible purchase and moving expenses you may have to pay, to help you with your budgeting. The exact fees and amount you will pay, is dependent on the value of the property you are buying and your chosen mortgage lender.

Mortgage booking fee: Some mortgage lenders will charge this to secure a fixed-rate or tracker deal.

Cost: £99 - £250

Mortgage arrangement fee: Some mortgage products will incur a mortgage arrangement fee, in addition to the mortgage booking fee. This fee is either paid upfront or added to your mortgage debt. If you chose to add it to your mortgage, the cost will increase over the lifetime of your mortgage.

Cost: £1,000 - £2,000

Telegraphic transfer fee: Needs to be paid to the lender to transfer the amount you are borrowing for the mortgage to the seller's solicitor.

Cost: £25 - £50

Mortgage broker fee: If you use a mortgage advisor to arrange your mortgage for you, you will need to pay a fee or commission, depending on the value of your mortgage.

Cost: £95 - £495. However, this may vary if you need to use a specialist lender

Valuation and survey fees: Charged by the lender to value the property you are buying. The cost varies according to which survey you choose:

Home condition survey: Most basic and cheapest of all the surveys and often used for new-builds.

Cost: £250

Homebuyer's report: More in-depth survey, assessing the inside and outside of the property, and also includes a valuation.

Cost: £400

Building survey: A complete survey generally used for older or unconventional properties. Although they are the most expensive, they are certainly worth considering, as it could potentially save you a lot of money if any structural problems are found with the property.

Cost: £600

Higher lending charge: Can be charged by lenders if you borrow most of the value of the property.

Cost: Approximately 1.5% of the amount you borrow

Searches: Your solicitor will arrange for the local authority to check whether there are any issues that could affect the property's value. The local council can charge a fee for carrying out these searches and may also request that a drains search be done at the same time.

Cost: £250 - £300

Legal costs: You will need to instruct a solicitor to carry out the necessary legal work for you.

Cost: £850 - £1,500 plus VAT

Stamp Duty Land Tax (SDLT): Charged on all purchases of UK land and property over £125,000. However, the amount you will pay is dependent on the purchase price of the property you are looking to buy, and whether you have owned a home before as follows:

First home: First-time buyers are exempt from paying SDLT on the first £300,000 of the purchase price of a property up to the value of £500,000. All purchases in excess of £500,000 will pay the standard stamp duty rates as follows:

• £0 - £300,000: 0%
• £300,001 - £500,000: 5%

Next home: If you are currently or have previously been a homeowner, you usually pay SDLT on increasing portions of the property price:

• £0 - £125,000: 0%
• £125,001 - £250,000: 2%
• £250,001 - £925,000: 5%
• £925,001 - £1.5 million: 10%
• £1.5 million+: 12%

Second property: If you are looking to buy an additional property, you usually have to pay 3% on top of the normal SDLT rates as follows:

• Less than £125,000: 3%
• £125,001 - £250,000: 5%
• £250,001 - £925,000: 8%
• £925,001 - £1.5 million: 13%
• £1.5 million+: 15%

For example, if you buy a next home for £275,000 the SDLT you owe is calculated as follows:

0% on the first £125,000 = £0

2% on the next £125,000 = £2,500

5% on the final £25,000 = £1,250

Total SDLT = £3,750

Information correct as of December 2017 - Source: www.gov.uk/stamp-duty-land-tax... costs: Paid to the removal firm (if you choose to use one) to pack, transport and deliver your possessions to your new home.

Cost: £300 - £600

For the majority of mortgages, you borrow money from a lender to buy a property and pay interest on the loan until you have paid it back. The only exception are interest-only loans. Here are the different types of mortgages available:

• Repayment
• Interest-only
• Fixed rate
• Variable rate
• Tracker
• Discounted rate
• Capped rate
• Cashback
• Offset
• 95%
• Flexible
• First time buyers
• Buy to let

Repayment mortgages: Every month you make a payment which is calculated so that you pay off some of the capital you have borrowed, as well as the interest. By the end of your mortgage term, you would have repaid the entire loan.

**Interest-only mortgages: **Each month you pay only the interest on your mortgage and repay the capital at the end of your mortgage term. This option will not suit everyone, as you will need to guarantee that you can find the money when the time comes. If you don't, you risk having to sell your property to pay off the mortgage. Lenders can also insist that you provide evidence on how you intend to do this.

Fixed rate mortgages: Popular with first time buyers, as you know exactly how much you'll be paying each month for a particular length of time.

The disadvantages are that you may have to pay a higher rate if the interest rate falls, and a repayment charge if you either switch or pay off your mortgage before the end of the fixed term.

The lender will also automatically place you on a standard variable rate (SVR), which will probably have a higher interest rate, in which case you will need to apply for another fixed rate deal.

**Variable rate mortgages: **Also known as a Standard Variable Rate (SVR) and are every lender's basic mortgage. The interest rate fluctuates, but never above the Bank of England's base rate and is determined by your mortgage lender.

Tracker mortgages: Vary according to a nominated base rate, normally the Bank of England's, which you will pay a set interest rate above or below.

Discount rate mortgages: Some of the cheapest mortgages around but, as they are linked to the SVR, the rate will change according to the SVR and are only available for a fixed period of time.

Capped rate mortgages: A variable rate mortgage, but there is a limit on how much your interest rate can rise. However, as mortgage rates are generally low at present, many lenders are not offering them.

Cashback mortgages: Lenders typically give you a percentage of the loan back in cash. However, you need to look at the interest rate and any additional fees, as it is very likely that you will be able to find a better deal without cashback.

Offset mortgages: Combines your savings and mortgage together, by deducting the amount you have in your savings, meaning you only pay interest on the difference between the two. Using your savings to reduce your mortgage interest means you won't earn any interest on them, but you will also not pay tax, helping higher rate taxpayers.

95% mortgages: Generally for those with only a 5% deposit. However, as there is a risk that you may fall into negative equity if house prices go down, mortgage rates are usually high.

**Flexible mortgages: **Allow you to overpay when you can afford to. Other mortgages give you this option too, but you can also pay less at particular times or miss a few payments altogether if you have chosen to overpay. This does however come at a cost, as the mortgage rate will generally be higher than other mortgage deals.

First time buyers mortgages: All of the aforementioned mortgages are available to first time buyers, although some are more favourable than others. The government also offers a number of incentives for first time buyers through its help to buy scheme.

Buy to let mortgages: Enables you to purchase additional property for renting purposes only. The amount you can borrow is partially calculated on the rent payments you expect to receive.

If you have a history of bad credit including; arrears, defaults, county court judgements (CCJs), debt management plans or bankruptcy, there are still mortgage options available. Your choice of mortgage lender and type of mortgage will however be limited, and the rate of interest will be higher than someone who has a good credit rating. Our expert mortgage advisors are in regular contact with adverse mortgage lenders and are well placed to advise you on all your available options.

If you have bad credit, the mortgage options available to you are similar to standard mortgages. However, you will have to pay a higher rate of interest, and will likely need a larger deposit of around 15% or more. The more you can save however, the better your chances are of getting your mortgage application approved.

Mortgage lenders see those with poor credit as a risk, and therefore charge a higher rate of interest and request a bigger deposit to mitigate this.

If you have a history of bad credit or are worried about your finances, get in touch. Our mortgage advisors are experts in adverse mortgages and can advise you on your available options to help you get on the property ladder.

Most people have a general idea about their credit rating. But, it's important to check your credit rating before you apply for a mortgage. In doing so, you will know whether you will need to apply for a standard or poor credit mortgage, and avoid having a rejected mortgage application appear on your report, which could affect your future credit chances. To obtain a copy of your credit report, sign up to either Experian, Noddle or Equifax.

To improve your bad credit rating, there are a few things you can do to possibly increase your chances of being approved for a bad credit mortgage:

• Check that you are on the electoral roll
• Always pay your bills on time and in full
• Close any credit accounts you have for stores or catalogues and no longer use
• Consider applying for a credit builder credit card, to help show lenders that you can manage money responsibly
• Guarantor loans can also improve your credit score, if you keep on top of your repayments
• Regularly check your credit report to make sure that all the information is correct. If any of the details are incorrect, contact the relevant lender and ask for these to be amended.

Making these changes should help improve your credit score, but it will not happen overnight, especially if you have a history of bad credit or have missed multiple payments.

If you have a history of bad credit including; missing a few credit card payments or County Court Judgements (CCJs), there are still mortgage options available, even if you have previously been turned down by a high street bank or building society.

There are mortgage lenders who specialise in providing mortgages to individuals with a poor credit history. Interest rates for bad credit mortgages are usually slightly higher than standard mortgages, as you are seen to be a higher risk. However, if you keep up your repayments, your credit rating should improve and allow you to move to a standard mortgage within a few years.

Our mortgage advisors regularly deal with bad credit mortgage lenders, and are well placed to find you the perfect right to buy mortgage to suit your individual needs.