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Mortgage Advisor Skateboarding in Colchester! 

Short clips of information like this are aimed at helping our clients to understand what a mortgage is all about. However, when I meet clients I do not arrive on a skateboard, but if you find me with an arm in plaster this might explain it. 
There are some key steps to take before offering to buy a house. Whilst these may be obvious, putting things in the right order will save time, and can ensure that you don't miss out on catching your dream home. 
All applicants for a mortgage must do this first... 
register on the voters roll at the current address 
make sure that all of your financials (bank accounts, credit providers etc), are pointing at your registered home address 
get either an Experian or Equifax credit report- not the score - the full report. Dont bother with the free credit files, these two are the ones that lenders use, and they are the mortgage underwriters Bible, so if it is written in here, that is what the lender will see and believe. Nothing else! 
In terms of when to start arranging a mortgage, this should be done well in advance of the property search. This is for the following reasons 
you need to know what budget you will have to work with in terms of mortgage borrowing and monthly cost 
you also need to be able to satisfy an estate agent that any bid you make is worth putting forward to a vendor so you need to arrange a mortgage decision in principle (DiP) before your property search.– REMEMBER it is important to separate your finances from an estate agent’s mortgage services, as the agent works for and is paid by the vendor, not for the purchaser. You never show the vendor how much you have in your wallet! 
the mortgage DiP lasts for three months and can easily be refreshed, so you will always be ready to make an offer on a property that will be accepted and avoid disappointment of missing a property that is in demand 
Mortgage explained: 
There are three corners to a mortgage 
the buyer (you) 
the house 
the lender 
The lender wants to know that you can afford the mortgage and that you are a good risk. This is why they provide the DiP service. 
The lender then wants to know that a house you want to buy exists, is habitable and is worth the money being paid. This triggers a valuation. 
The lender is the one you have to convince to give you lots of money, so what they say and want has to be respected. This is why your broker has to ask you to provide a long list of annoying documents. 
Documents needed 
This is not a comprehensive list, but the basic documents for a mortgage application are 
Current mortgage statement 
ID - copy of driving licence or passport showing photo – both if possible 
Credit reports 
Proof of income  
PAYE payslips for last 4 months and P60 
Proof of income (Sole trader/limited company shareholding director) 3 years accounts AND 3 years Tax Year Overview AND Tax Computation 
Proof of deposit – this must also show 6 months build up of funds from whatever source 
Bank statements (last 4 months, corresponding with payslips) 
If your current address is not on any of the above additional proof of address will be needed (eg utility bill) 
Completed income/expenditure review 
When clients ask for accountancy recommendations in Chelsmford I recommend Chris Regan. He is straightforward, clear and efficient. He covers from Colchester to London like Tapper Financial Services. Click here to the web-site - Chris Regan Ltd 
Prestigeous London offices for our London based clients make meeting to discuss mortgages and insurance so simple. Mansion House, Blackfriars and St Pauls tube stations are a short walk from the Lambeth Hill offices next to Millenium Bridge. Our clients really appreciate these quiet, private meeting rooms available to discuss personal finances. Click here for Google Map to EC4V 4GG 
Neil Brisland runs an independent firm offering surveys for residential homes (and commercial). The service is very reasonable and the resulting report provides a comprehensive record of the state of the property. Invaluable for anyone purchasing a home that does not come with a guarantee. 
Click NBHI 
London, Colchester and Chelmsford are the largest towns in the area covered by Tapper Financial Services. Predictions are that there will be a continued increase in house prices in Chelmsford and Colchester, whilst London may eventually lose some steam. We have included links to helpful reviews by Zoopla about all three towns. They include some very useful information for anyone considering a move to these areas. Additional sources of information about these towns and the most desirable areas are estate agents and mortgage brokers. Don't forget the old maxim; Location! Location! Location! which remains the key issue to consider when buying a property. 
Click here for the Zoopla Chelmsford review 
and click here for the Zoopla Colchester review 
and click here for the Zoopla London review 
Once you have had a chance to look at these, come and talk to us about mortgage finance! 
Your home may be repossessed if you do not keep up repayments on your mortgage. 
We charge a typical fee of £595 for mortgage arrangement. 
According to Tapper Financial Services millions of borrowers are asleep, sitting on a lender’s basic rate (SVR)* despite interest rates at all-time lows! 
By comparison in 2007 more than a million borrowers a year were re-mortgaging to obtain a better deal. By 2016 the figure had dropped to just over 384,000 per year, according to the Council of Mortgage Lenders. Hundreds of thousands of people more a year are in a dream world when it comes to mortgages. 
Yet UK mortgage rates are at an all-time low. So why are so few borrowers choosing to change lender to obtain a better deal? Whilst brokers and the financial media often shout about the benefits of shopping around for the best deal, this seems to have little effect on consumer behaviour. 
According to data firm CACI, about 3 million UK borrowers are resting idly on their lender’s standard variable rate, with loans totalling around £246bn and a further £122.9bn-worth of mortgages will revert to SVR in the second half of this year according to Virgin Money. 
This ‘Sleeping Beauty Effect” as some professionals have called it, is earning an estimated whopping £10bn a year additional income for banks and building societies. Despite interest rates having fallen to historic lows, £816bn-worth of mortgages were more than 2% above base rate at the end of last year. That accounts for nearly two-thirds of the £1.3tn of outstanding mortgage debt in the UK, the Council of Mortgage Lenders says. 
Do the maths 
At present, the average SVR is 4.59%. For a borrower with a £150,000 mortgage, this means they would pay £841 a month. However, if the same borrower were to switch to a 0.99% 2 year fixed-rate deal, they might pay only £565 a month, saving themselves a massive £3,312 a year! 
Of course, not all borrowers would be eligible for such an attractive rate. Nevertheless, even the prospect of saving thousands of pounds a year does not appear to be enough motivation to persuade thousands of borrowers to remortgage. 
Brokers like Tapper Financial Services think a major reason for this is customer apathy. But why such inertia? Why are so many fewer borrowers taking advantage of cheaper money? 
The view of Tapper Financial Services is that much of the cause for inertia lies with the media and press. Many borrowers don’t actually know what rate of interest they are paying. They may feel they are already on a good rate, although they could be on an even better deal without knowing it. We are constantly told that interest rates are at their lowest point ever, so people are led to believe that they cannot do any better! So why would you feel the need to change your mortgage? 
With family budgets being hit by inflation and austerity, the time is absolutely right for anyone with a mortgage to wake up and contact a local broker and find out if they could reduce their monthly mortgage payments. You never know, he might turn out to be a Prince Charming! 
This information is for anyone who will need a mortgage or re-mortgage to buy a property.  
Step 1: Get on a roll 
The electoral roll is one of the key sources of information for credit agencies and lenders – and vital to verifying your identity. If you are not on it, it can be very difficult to get any credit at all. And it’s vitally important that your address on the roll is accurate and up-to-date. 
To find out how to register, go to the About My Vote website. To check if your details are correct on the electoral roll, contact your local council. 
Step 2: Know your credit every time you apply 
– and space out your applications 
Before you apply for any form of credit, make sure that you know whether there is anything in your credit rating that might cause you to be rejected. Checking your rating with agencies like Equifax or Experian costs £2 or less – and it can have a big impact on your future ability to take out loans or mortgages. When you apply for a financial product, the lender will ask permission to check your credit file – and if they reject you, the search that they conducted could be a factor in any future lending decisions. 
Make sure all the information on your file is up to date and accurate. If it isn’t, request that the agency correct it. If you have missed any credit or loan repayments, you can request that a “notice of correction” be attached to your file to explain why – and give important perspective to future lenders. 
A lot of credit applications in a short space of time could be interpreted as evidence that you are struggling to keep up with your obligations, so even if you are shopping around for options, try to space out your applications for credit. Some companies will agree to do a “soft search” or quotation-only search, which doesn’t appear on your credit file, and this can be useful for protecting your rating. Make sure you know what type of search they will be conducting – and avoid unnecessary full searches if you can. 
My personal experience is that many clients have information sitting on their credit files about which they are totally unaware, and often it is wrong or damaging for one reason or another. 
Lenders need a fair and efficient means of assessing the level of risk that mortgage applicants represent. A potential mortgage client's reliability when it comes to paying bills and using financial products is one of the best indicators available. This means that lenders check your credit files at Experian and/or Equifax, but if that information is wrong, or there is information there which could down-grade your status, you really do need to know about it and get it changed. This is essential before making any mortgage application. 
Step 3: Play your cards right (and don’t hold too many of them) 
If you have credit cards (including store cards) that you don’t use, the lines of credit will still be shown on your file – and some lenders may worry that you have too much potential credit available to you. It makes sense to cancel any cards you no longer use, and check your credit file to make sure the changes have been logged. 
Don’t do this if it will mean overloading your remaining cards though, as lenders also look at the percentage of your available credit that you use. If you have older cards, it’s also important to check that the address registered on them is up-to-date. Having different addresses on your credit file can be a risk factor for lenders. 
Step 4: Build up your reputation 
To judge your reliability when it comes to loans, a mortgage provider needs to look at how you have used credit in the past. Make sure that you have a history of managing credit responsibly by staying within overdraft limits, and making certain that you never miss a payment on credit cards, loans and utility bills. 
Use direct debits to help you pay on time, although you will still need to ensure that there is enough money in your account. Remember that making agreed payments and avoiding any missed bills will have a more positive impact on your credit history than paying some debts off in their entirety but missing other payments. 
Avoiding credit altogether won’t give you a positive credit rating, since it means loan providers don’t have access to information about your reliability. However, don’t try to remedy this by applying for lots of different products at once, as many different searches can have a negative impact on your credit rating. 
If you are considering applying for a mortgage with a lender, then it can help to build up a relationship with them beforehand. Having a current account can help to give them a first-hand view of your cash flow and your reliability, as can making regular payments to a savings account to build up a deposit for your home. 
Step 5: Stick to fixed-line 
Mobile phone numbers are great for ensuring that you are always contactable – but they do not give the same sense of stability and reliability as a landline number where credit applications are concerned, and can cause concerns over potential fraud. When you apply for any credit, make sure to use your landline number if you have one. 
Step 6: Never Never Never use Pay-Day Loans 
Lenders view someone who has recently used a pay-day loan as unable to manage their finances. Pay Day Loans are toxic to your credit rating and lenders will probably reject your application outright if you have used one recently. If you have used one recently, do make sure that you cease using them as soon as possible. You will need to demonstrate that you have not used a payday loan for up to 6 months before applying for mortgage finance. The rule is never use a payday loan before applying for a mortgage. 
For some time now it has been the received idea that self-employed people must have a minimum of three years accounts in order to be able to obtain a mortgage. This is one amongst many traditionally held myths about mortgage criteria. 
In fact, there are many lenders who are perfectly happy to lend to sole traders and limited company directors on two full years trading and this has long been the case. However, it is not well known that there are an increasing number of lenders who are quite happy to lend against a single year's trading accounts. 
The cautionary point here is what defines the full trading year. if you have started to trade 12 months ago, but have re-started your financial year somewhere in-between then you will have to wait for the new year to complete before applying for a mortgage. 

Mental Health Crisis 

The Mortgages Company has launched an initiative to Raise £2020 in 2020 for youth mental health charity, MIND. See the Project 2020 page for more information. 
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