Dax McLean, Author at Mortgageable

How is Mortgage Interest Calculated?

by Dax McLeanPosted on 26th May 2021 | Updated 20th January 2023

When looking at mortgage products, a large focus is on the interest – the type of interest applicable, the rate and the term that the lender agrees to set the rate for.

In this post, we will cover what mortgage interest is, how it is calculated and why the rate is so important in relation to mortgages.

What is Mortgage Interest?

Mortgage interest is crucial to establish the total cost of the borrowing, and in essence, how much the balance of the loan will increase each month.

How is Mortgage Interest Calculated?

Interest rates are calculated as a percentage of the balance of the mortgage and the interest applicable can be applied daily or monthly depending on the terms of the mortgage.

There are generally two types of mortgages, that determine how the interest is applied:

Repayment Mortgage – Where each monthly repayment includes both an element of capital repayment plus interest, resulting in the capital being repaid over time.

Interest-Only Mortgage – This option means that the capital borrowed is not repaid during the mortgage term and the monthly mortgage repayments cover the interest applicable only. With this type of mortgage, an exit strategy is required, planning how the capital balance will be repaid at the end of the term. Interest-only mortgages can keep the monthly repayments low and are suitable in certain circumstances.

The next important factor in the mortgage calculation depends on the type of mortgage selected between:

A fixed-rate mortgage – Where the interest rate and monthly mortgage repayment remains the same amount for a set period of time, commonly between a 2- and 10-year mortgage term.

A variable-rate mortgage – A type of mortgage product where the interest rate can fluctuate, and therefore the level of repayments can also alter depending on the Bank of England base rate or the Libor rate. Often the interest rate for a variable-rate mortgage product tracks as a set percentage above the Bank of England base rate or the Libor rate.

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Why is a Mortgage Interest Rate so Important?

The mortgage interest rate will set both the amount of the monthly repayments as well as how quickly the capital mortgage value decreases, if on a repayment mortgage product. In simple terms, the higher the interest rate equates to higher monthly mortgage repayments.

What Mortgage Products have the Lowest Interest Rate?

Typically, the lowest mortgage interest rates available are on variable mortgage products and fixed-rate mortgages are more expensive to lock in the security of setting the monthly mortgage repayments.

In addition, the shorter the duration of the mortgage term will often see lower interest rates, as longer fixed periods increase the risk to the mortgage lender.

How is the APRC different to the Mortgage Interest Rate?

APRC is the annual percentage rate of change, which equates to the mortgage interest rate plus any fees and charges, which is useful when comparing mortgage offers, whereas the mortgage interest rate advertised will likely be the interest rate only.

What is Mortgage Amortization?

Amortization is the process of spreading out the monthly payments of the capital and interest due over the mortgage term, therefore over time, although the repayments stay the same, the capital is repaid at a higher percentage each month.

What is the Difference Between the Daily Interest and Annual Interest Mortgages?

It is most common for interest to be calculated and added to a mortgage balance on a monthly basis, however, in some circumstances, this is undertaken on a daily basis.

With a daily interest mortgage, every payment made to the lender can reduce the interest due promptly as the interest calculation is undertaken every day.

Therefore, if the mortgage holder was in a position to make a number of overpayments, the benefits can be felt sooner.

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How do I Gain the Best Mortgage Rate?

Lenders usually advertise their best interest rates that they could offer to mortgage applicants if they meet a range of set criteria. Not all applicants would meet the criteria exactly, and therefore may be offered a less advantageous rate.

In order to obtain the best interest rate available, it is strongly advised that applicant’s take time to prepare their circumstances to be in the best position before applying.

The main factors that impact the mortgage rate offered are:

The applicant’s credit history and current credit score – In order to obtain the best mortgage interest rate, an applicant would need to have a good credit history and a current acceptable credit score. Each lender will have different expectations with regards to a successful applicant’s financial situation, however, it is advisable to put yourself in the best position possible before making an application. There are many ways to improve your current credit score such as ensuring that you are registered on the Electoral Roll, however, if there are elements of your credit history that are less than perfect it would be recommended to seek advice before applying.
Have a sufficient deposit and therefore good Loan to Value ratio – The larger the deposit you can provide towards the purchase of property reduces the lender’s risk and therefore, in turn, they can offer a lower interest rate on a mortgage. For example, a potential homebuyer with a 40% deposit will qualify for much-improved interest rates than someone only offering a 10% deposit.
Explore the wider mortgage market – Competition within the mortgage market can also determine the interest rates available. It is always highly recommended that thorough research is undertaken, across the wider mortgage market before applying to a lender. Should you wish to have help, support and guidance during the research phase, to compare lender’s you can opt to use a mortgage broker.

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How is mortgage Interest Calculated? Summary

In this post, we have explored the range of factors that impact the mortgage interest rate offered.

There is a range of factors that impact the interest rate offered, such as the loan to value rate and the applicant’s financial position, as well as factors that are outside of the control of a potential homeowner including the Bank of England Base Rate.

Should you be in the market for a mortgage or re-mortgage, please contact our friendly team to book a personalised consultation.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

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Right to Acquire Mortgage

by Dax McLeanPosted on 17th May 2021 | Updated 20th January 2023

What is the Right to Acquire Scheme?

In this guide, we will explore the criteria that would need to be met in order to partake in the scheme as well as the process required to follow in order to buy the property under the scheme.

What is Right to Acquire?

The Right to Acquire is a government scheme launched in 1996 to enable eligible tenants to purchase the property that they live in.

The scheme covers Housing Association properties leased directly, or via a public sector landlord including councils, NHS trusts or NHS foundation trusts.

In addition to the usual benefits of owning the property, the purchase price is also discounted as part of the scheme. The level of discount available depends on the location of the property.

There are criteria for both the applicant(s) as well as the property that would need to be met to be able to make an application to the scheme.

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The Differences Between Right to Buy and Right to Acquire

The Right to Acquire scheme is different to the Right to Buy that was introduced in 1980 enabling tenants to buy their property from the local authority.

The Right to Acquire scheme is specifically for Housing Association tenants.

What are the Eligibility Criteria for the Right to Acquire Scheme?

As discussed, there are two types of criteria that need to be met in order to make an application to the government scheme. The eligibility criteria for both the applicant and the property are as follows:

The Applicant:

Must have been a Housing Association or public sector tenant for a minimum of three years. In addition, the landlord must be registered with the Regulator of Social Housing.
For joint applications, the other applicant must be either the person who shares the current tenancy or up to three family members who have lived within the property for at least twelve months
The applicant must not have a history of either bankruptcy or previous court order requiring you to leave a property.

The Property:

Must have either been built or purchased by the Housing Association after 31st March 1997
Transferred from a local authority to a Housing Association after the 31st March 1997
The property must also be a self-contained property and be your only or main home.

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What is the Application Process for the Right to Acquire Scheme?

If an applicant feels that they meet the eligibility criteria for the Right to Acquire scheme as stated above, the first step would be to complete the application form, known as an RTA1 form, available from the government’s website.

The form needs to be submitted to your Housing Association landlord who will assess the application and reply within four weeks.

If the Housing Association landlord agrees to sell the property, an offer will be made within:

Eight weeks for a freehold property
OR
Twelve weeks for a leasehold property

Should the Housing Association landlord refuse the application, an explanation must be provided, however, there is not an appeal process available.

The landlord has the right to offer the choice of either purchasing the current property or another empty property that they own. Either way, the offer will include details of:

The offer price and the calculation details
The discount offered and how this was established
The property details included within the sale
Any details of known property defects such as subsidence matters
Estimations of any service charges covering a five-year period, if applicable

Following receipt of the offer, the Right to Acquire applicant has twelve weeks to decide whether or not to proceed with the purchase.

Should an applicant opt to purchase the property via the Right to Acquire scheme, they must arrange the necessary funds in the same manner as traditional house purchase, this may include applying for a mortgage.

Right to Acquire Mortgages

Over recent years more and more Housing Association tenants have taken up the Right to Acquire and therefore the mortgage market has responded, with many lenders adapting their financial products to meet the requirements of the scheme.

In some circumstances, a deposit is not required when purchasing a property via the Right to Acquire scheme, depending on a range of factors including the discount offered by the landlord.

However, each lender will have their own criteria and policies in relation to managing the calculations and mortgage eligibility.

It is worth noting that if a deposit is not required, the terms may differ to finance options where a deposit is paid.

In order to access the wider mortgage market and receive expert advice on which lenders specialise within this sector as well as comparing terms between lenders, approaching a mortgage broker is highly recommended.

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Other Right to Aquire Considerations

Should you purchase your property via the Right to Acquire scheme there are a handful of considerations to note as follows:

If the property is sold within the five years of ownership, the discount may need to be repaid either in its entirety or partially
Similarly, if the property is repossessed by the mortgage lender, the discount may also be forfeited

Right to Aquire Mortgages Summary

In this guide, we have discussed many aspects of the Right to Acquire scheme including what the scheme is, the eligibility criteria for applicants and the related property.

They will also review the application process in order to proceed with purchasing a home via the scheme.

Our friendly team have expert advisors who have access to the whole of the mortgage market as well as holding insight and recent knowledge of which lenders and financial products will be most suitable for your requirements.

Should you need any further assistance with applying for the Right to Acquire scheme, assessing a landlord’s offer or obtaining a mortgage, please feel free to get in touch today.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

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Mortgage Declined by Underwriter? What to do next

by Dax McLeanPosted on 17th May 2021 | Updated 20th January 2023

After searching the mortgage market for the right product for you, drafting your application and gathering all of the necessary documentation together, you find out that your application has been rejected.

It would only be natural to be feeling a mix of emotions from frustration to deflated but the most important thing to remember is not to panic.

In this guide, we will explore the common reasons why a mortgage is declined and the next steps available to someone who has had their application refused.

What is a Mortgage Underwriter?

Employed by the bank or lender, an underwriter has the task of determining the perceived risk of the borrower.

Even though you may be at the point of passing the initial credit checks and have secured a Mortgage in Principle, final approval is still not guaranteed.

Only once the property has been valued and the underwriter has carried out an in-depth review of your finances can you be sure of a final decision.

Reasons Why Mortgage are Declined by Underwriters

Unfortunately, mortgage applications can be declined at various stages throughout the process, for a range of reasons.

Some matters may seem minor on their own, however, lenders may associate a handful of risks and decline an application as a pro-caution whereas other, more serious matters would result in rejection in their own right.

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Mortgage Declined by Underwriter Reasons

Why do underwriters decline mortgage applications?

High Levels of debt

A lender will review each mortgage applicant’s credit file during the underwriting process including the level of debt that the applicant has.

Debt is reviewed by potential mortgage lenders as applicants with high levels of debt may fail affordability checks. Each lender will have their own criteria of what they deem as acceptable levels of debt.

However, they will also investigate other factors such as the number of open credit accounts, as well as the percentage of current debt as a ratio of the total available credit limits and the level of income committed to monthly debt repayments.

Poor Credit Score and Credit History

During the mortgage application process, the potential lender will request and review credit reports of the applicant(s) including
analysing their current score as well as detailed credit history.

If an applicant has a County Court Judgement (CCJ) recorded, has previously filed as bankrupt or has a previous home repossession, a mortgage application could be declined with some lenders.

Affordability concerns due to high monthly expenditure

As part of a mortgage application, applicants will usually be requested to provide copies of their bank statements so that the underwriters can review monthly income and expenditure transactions.

During the review process, should significant outgoings be identified, leaving low monthly disposable income, a mortgage could be rejected due to the lender’s affordability criteria.

Mortgage deposit insufficient

Another reason that a mortgage application could be declined is due to the deposit level.

Although the level of deposit is usually known from the outset by both the mortgage lender and applicant, changes can occur due to either of the following scenarios:

The mortgage lender could reduce their mortgage so that a larger deposit is required by the applicant, perhaps due to affordability factors or other risk factors discovered during the underwriting stage.
Upon the valuation of the desired property, the price was increased or the vendor requested a higher price during the buying process resulting in a larger deposit being required to secure the property.

Salary or Employment Concerns

Should a change of employment conditions occur during the application process such as an applicant is made redundant, a mortgage offer may be declined.

In addition, if the evidence provided to prove the applicant’s income level is found not to match the details within the application, a mortgage offer could be withdrawn.

Concerns with the Property

Another reason that a mortgage may be withdrawn or declined is in relation to the condition of the associated property, which is only discovered from the property valuation report.

Properties that are deemed unhabitable, those with structural concerns, or issues such as damp or invasive weeds are not usually accepted for a mortgage.

Technical Errors or Insufficient Information

On the odd occasion, mortgages can be rejected either in error or due to insufficient documentation. Often a lender would liaise with the applicant(s) if there were any queries, however, if the criteria cannot be met with evidence where required, rejection can occur.

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How long does mortgage underwriting take?

Typically, the underwriting process timeline depends on the experience of the underwriter and how many applications they have pending.

Occasionally a sudden increase in applications can result in delays but your bank or lender should inform you of any changes or potential delays.

Next Steps following a Rejected Mortgage Application

Appeal the decision

Appeals can be made following a rejection however often underwriters would have reviewed most elements in detail as part of the application process, therefore unless an error can be identified it may not change the outcome of the lender’s decision.

Should you find yourself in the position of a declined mortgage application, it is highly recommended that expert advice is sought before making any next moves or further applications.

Mortgage brokers have an insight into the mortgage market, the lending criteria of the specific lenders and well overall trends to be in the best position to advise.

Also, such professionals can review an application in order to explore the causes and aim to provide a solution either with the potential lender that the original application was underwritten with or by searching the wider mortgage market for another provider willing to accept the personal circumstances that have been discovered.

In the situation where a mortgage is rejected towards the end of the process, speed will be of utmost importance to protect the applicant’s interests as well as often a chain of other house purchases may be impacted by a last-minute mortgage withdrawal.

In such circumstances an experienced mortgage broker would be required to help resolve the matter if possible to protect the purchase, however, should a solution not be found, legal claims may sometimes be brought due to a breach of contract.

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Mortgage Declined by Underwriter Summary

Ideally, mortgage brokers would aim to protect against a declined mortgage application by ensuring that an applicant met the lending criteria before an application is made, however, if there are circumstances beyond the control of the applicant and a mortgage is declined, brokers are there to support and advise on the next steps.

Should you find that your mortgage has been declined, try not to panic and get in touch with our friendly team as soon as possible so that our expert brokers can assist with identifying the concern and either liaise with the current potential lender or search the whole mortgage market for a specific lender suited to the personal circumstances.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

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Tier 2 Visa Mortgages Explained

by Dax McLeanPosted on 14th May 2021 | Updated 20th January 2023

If you have been working within the UK on a Tier 2 visa, you may have been considering your future including whether you would like to purchase a property.

In December 2020, the immigration system within the UK changed and Tier 2 visas were no longer available to new applications.

When a Tier 2 visa is nearing its expiration, a visa holder would need to apply for a skilled worker visa in order to extend their stay within the UK.

The new visa system is a points-based scheme that involves an applicant requiring 70 points to be eligible for a skilled worker visa.

This guide will explore the mortgages available to foreign nationals working in the UK under either a Tier 2 visa or a skilled working visa.

What are Tier 2 Visa or Skilled Worker Visa Mortgages?

A common misconception is that foreign nationals are unable to obtain a mortgage due to their visa status however this is not the case. Mortgage lenders will assess an application primarily on the usual credit checks and affordability criteria.

However, lenders will also be interested in the duration of time the applicant has resided within the UK and the amount of time remaining on their current visa.

Each lender’s criteria will vary however typically lenders would expect that mortgage applications will have been a resident within the UK a minimum of two years before making an application in order to build a credit profile within the UK.

Some lenders are even more strict and will require a three-year residency along with a UK bank and savings account, however in return, such lenders may offer more favourable terms.

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Can I Obtain a Tier 2 Visa or Skilled Worker Visa Mortgage with a Bad Credit History?

A history of bad credit may impact any mortgage application however the level of influence will depend on the severity of the financial difficulties.

History of County Court Judgments (CCJs), defaults, bankruptcy or Individual Voluntary Arrangements (IVAs) would represent a greater risk to a lender than a minor offence.

However, lenders would be interested in the duration of time that has passed since the bed credit matter was logged on an applicant’s credit history.

Although it would not be impossible to obtain a mortgage with a negative credit history, combining this factor with a visa-related status may inhibit your options.

In this scenario, it would be highly recommended that the applicant seeks independent financial advice ahead of making a mortgage application to ensure that all other personal circumstances are in the most positive position before approaching a lender.

A professional advisor can also advise which lenders would be most suitable, find the best financial product for the requirements and assess the likelihood of an application being accepted.

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Mortgage Lender’s Considerations When Assessing a Tier 2 Visa or Skilled Worker Visa Mortgage Application

As with a standard mortgage application, lenders will undertake an assessment process to review the entire personal and financial situation of the applicant(s) in order to make a decision upon lending.

Each lender will have their own criteria for reviewing a mortgage application including:

Age – Lenders will have a maximum age that they are prepared to lend to
Duration of residence within the UK – As discussed lenders will have a minimum requirement of how long an application should have lived within the UK prior to an application being made
Length of time at current address
Employment status and time with an employer
Number of dependants
Affordability – Lenders will each have their own affordability criteria which include reviewing the level of debts that an applicant has and availability of credit as well as monthly expenditure and levels of disposable income
Credit Score & Credit History – A lender would review both an applicant’s current credit score as well as detailed credit history report including information on records of the previous borrowing such as loans, credit cards, household bills and will breakdown the success of regular payments as well as detailing any late or missed instalments or other matters.

Should there be any significant events on a credit score such as County Court Judgments (CCJs), defaults, bankruptcy or Individual Voluntary Arrangements (IVAs) depending on the circumstances, it may be advisable to wait until the events drop off a credit report after 6 years.

If you have a history of any such occurrences, it is highly recommended that advice is sought from either an independent financial advisor or mortgage broker ahead of making a mortgage application who can assess all of the factors involved and advise the likelihood of an application being accepted.

Foreign National Mortgages

Tier 2 visas or Skilled Worker Visas are not the only types of immigration statuses that could be acceptable for a mortgage in the UK. Other work permits or statuses may be considered as long as the applicant meets the following core criteria:

Resided within the UK for a minimum of 2 years
Have a permanent employment contract in place
Have an open UK bank account

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Can I use a Tier 2 Visa or Skilled Worker Visa Mortgage to Purchase a Buy-to-Let Property?

Investing in property to rent out is a popular choice for many however the criteria for Buy-to-Let Mortgages is fairly strict, often requiring higher levels of deposits as well as a business plan detailing the forecast cash flow indicating the potential rental income.

There are no restrictions for foreign nationals working in the UK under either a Tier 2 visa or a skilled working visa, obtaining a Buy-to-Let Mortgage as long as the criteria can be met.

As with other types of financial products, often the lending criteria will vary between lenders and therefore for an insight into the market conditions and typical lender acceptance, it is recommended that an appointment is made with a mortgage broker.

Tier 2 Visa Mortgages Summary

If you are a foreign national seeking to purchase a property within the UK, please do get in touch with our expert team of mortgage brokers. Our team have access to a wide range of lenders and mortgage products in order to find the right match for your personal circumstances.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

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Walking Away from a Joint Mortgage

by Dax McLeanPosted on 7th May 2021 | Updated 20th January 2023

There are many different types of personal circumstances that could result in a joint mortgage holder consider walking away, including relationship breakdowns.

Unfortunately, emotions also tend to be running high during such a time, and therefore it’s always good to have a no-nonsense guide to review the considerations and consequences of certain choices.

Although we also strongly advise that independent legal and financial advice is sought before making any commitments.

Joint Mortgages

Firstly, let’s cover the responsibilities that each party has within a joint mortgage. In a typical joint mortgage, both parties listed on the mortgage will have equal responsibility to ensure that the monthly mortgage repayments are paid in full.

This does not change following a couple’s separation and therefore a formal process would need to be undertaken to notify the lender and make a change.

While a couple is separated and in dispute, it is important that the mortgage payments are made in full otherwise the consequences of mortgage default are likely and will be felt equally between both parties.

Any mortgage defaults will impact both parties credit score and therefore will restrict the future financial options available, and therefore should be avoided.

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Considerations When Reviewing the Option of Walking Away from a Joint Mortgage

The ultimate outcome of walking away from a joint mortgage will depend on the personal circumstances of all parties involved.

Typically walking away in its basic form would result in the equity owned being transferred to either; the other party or someone else.

A typical joint mortgage will be based on a ‘without tenants in common’ agreement meaning that one party would need to seek the consent and permission of the other in order to sell their shares.

In an agreement can be made, the transfer of equity can be made legally following which, the mortgage lender would need to be informed.

The lender would undertake mortgage affordability checks to ensure that the person retaining ownership can solely afford the mortgage repayments.

If one party can afford the mortgage on their own, this process would not require additional finance is needed.

Often additional funds can be raised on the mortgage or via an alternative lender (subject to lender criteria and affordability checks) to pay an equity share to the person being removed from the mortgage.

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However, in unamicable situations where one party refuses to take on the proportion of ownership from the other party but refused to let the party sell to anyone else, there are relatively few options, although the lender may, in some circumstances accept the removal of one party from the mortgage.

Sometimes it may be appropriate to force the sale of a property under a joint mortgage by applying to the court for an order to remove one party from the title deeds of the property but not from the mortgage itself.

This would mean that the ex-partner would not have any further claim to the property but would still be responsible for the mortgage repayments.

In this situation, it is strongly recommended that independent legal and financial advice is sought before making any rash decisions.

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Possible Options Instead of Walking Away

It is highly recommended that before a situation breaks down, amicable discussions are encouraged to find a way forward, suitable to both parties, such as:

Continue to contribute towards the mortgage – Where possible, exploring options of an agreement between both parties to continue jointly paying the mortgage.

This may not result in both parties continuing to make equal payments, especially if one party has moved out however, if an agreement can be made it would protect both parties’ interests whilst retaining the ownership of the property, even for investment purposes.

It is also worth noting that there are mediation services available in order to help guide this negotiation process.

Find a replacement for the Joint Mortgage – In some circumstances, it may be appropriate to ask a family member to replace one party on a joint mortgage if this meets lender criteria.
Selling the Property – As discussed, both parties would need to agree on selling up before this could be undertaken, however by selling the finances are split up and the individuals are able to proceed however they wish, including the option of buying a different property alone.

Obviously, this option involves additional costs such as estate agent fees, legal costs and stamp duty on a new property, which need to be factored into the proceeds of each share.

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Walking Away from a Joint Mortgage Summary

We appreciate that separation is an emotive topic however during this article we have aimed to provide the facts on joint mortgages including the consequences of walking away from a joint mortgage.

We have also provided a range of alternative options, which if you are wishing to explore, please do get in touch to book a consultation.

Here at Mortgageable, we understand and appreciate that multiple factors are often at play during separation and also understand the toll that emotive situations can take, however, we also work with our clients, to ensure the protection of their interests.

As discussed throughout this article, early and amicable intervention is often favourable for both parties and therefore it is important to seek legal and financial advice as soon as possible.

That way all options are explored with time to consider the choices, including reviewing any consequences before any decisions are made.

We always treat all clients with the utmost care and confidence throughout such difficult times.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

Further reading:

What Year Was Your House Built?

by Dax McLeanPosted on 7th May 2021 | Updated 20th January 2023

Are you wondering what year your house was built? And how old your house is?

You can find out when your property was built relatively easily and this guide we’ll explain how…

People often have questions about their property, including wondering who the previous owners were or when the property was built however the homeowner may be unsure where to find the information.

In this guide, we are going to discuss where to find information that will help identify the age of a property as well as learning about previous owners and occupiers too.

Where can I Find Out When My House was Built?

There are commonly two places that can be checked to establish when your property was built, either via the county offices website or the land registry.

Where can I Find Information to Establish the Age of my Property?

There are few sources of information that could be useful in order to determine the age of property including:

Records within the 1982 Act Register – A register documenting around two thousand homes that were built before 1862
Local archives held within the local authority council, parish or local library – There are a vast range of documents held in local archives such as old telephone books, papers and maps which may help when researching details about a property

If the property is of national importance due to architectural or historic interest, it may be listed on a special register, commonly known as the status of a ‘listed building’.

Such properties are protected by law and therefore any changes to a listed building must be carefully monitored via an application for listed building consent should any alternations be desired.

The records of properties registered on the List of Buildings of Special Architectural or Historic Interest, are held by the National Heritage and are publicly available.

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How can I Find Out When My Property was Built?

The information found in public records may provide information on who owned the land or who lived in the property, however, they may not cover when the property was built for a number of reasons.

For example, there could be records of a property on the site for hundreds of years however at one point the building itself may have been damaged and therefore re-built.

Therefore, for a more accurate timeframe of when your property was built the following would be of interest:

Obtain a property survey – A property survey involves the instruction of a Surveyor to visit and inspect the property.

The Surveyor would write a report detailing the type of construction that the property is made from, the age of the property and would provide further details on the current condition of the property.

Obviously, there are costs involved with obtaining a property survey that would need to be considered.

Request details from the local planning office – Most developments or property changes require planning permission to be granted before they can proceed and therefore the local planning office is likely to hold documents providing a history of such changes. The local authority may charge a fee for providing copies of the data held.
Land Registry Records – The records held by the Land Registry can provide many details about a property including details of the current property owner, details of any mortgagees or other charges against the property, as well as information regarding the history of the building. Again, there will be charges to request copies of the information held by the Land Registry.
Checking Tax Records – The tax rules have changed over the years and therefore the reliability of the data is not guaranteed, however checking tax records may help pinpoint when a property was built as property taxes may have been payable. In addition, documents that record property values may also trace construction phases or extensions being added.
Property Deeds – The property deeds also contain information indicating when a property was built. Copies of property deeds can be requested from the government’s website, and again there is a small charge for the service.

Further general information is available that can help to estimate the age of a property such as reviewing the style of the property for any features that relate to an era within building history, for example, the position of the windows.

Historic England also provides further information to assist with estimating the age of a property. In addition, historical ordnance survey maps may help provide information, as well as local sources such as asking neighbours, although the accuracy cannot be guaranteed!

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Where can I Find Out Who Were the Previous Occupiers of the Property?

The census is a survey that takes place every ten years within England and Wales, collecting data on households including details of the residents, their occupations and education level.

The data collected is used for many purposes from academic studies or to aid local policymakers and is made publicly available one hundred years after the census took place.

This data can be a great insight to discover who previously occupied property if the property is more than one hundred years old.

If the property is less than one hundred years old, the other places to look for information on previous occupiers are the local housing records and local library archives.

Copies of the local housing records can usually be requested through the local authorities’ website or office and would contain a list of who lived within the property, whereas local library archives may have other information such as phone books.

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When Was My House Built Summary

There are many sources of information available to establish when a property was built, details of previous owners and occupants and a vast array of other information, however, documents will be more accurate than others.

This post has explored the different locations that information is stored and an introduction into the process of how to request access to view the information or copies, usually for a small fee.

Should more in-depth information be required about a property including its construction type and current condition, a property survey can also be arranged however the price of such a service does range anywhere from £400 to £1,500.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

When Was Your House Built? How To Check Property Age

Kristian Derrick

by Dax McLeanPosted on 7th May 2021

Curious about the origins of your home? Determining the construction year and uncovering the history of your property can be a fascinating journey.

In this comprehensive guide, we’ll walk you through the steps to easily uncover when your home was built and delve into its past.

Many homeowners find themselves intrigued by questions about their home’s previous occupants or the year it was constructed, yet they often don’t know where to start. We’re here to help.

This guide will provide you with the resources and strategies needed to determine your property’s age, uncover the stories of its previous owners, and connect more deeply with your home’s unique history.

Where can I Find Out When My House was built?

There are commonly two places that can be checked to establish when your property was built, either via the county office’s website or the land registry.

Where can I Find Information to Establish the Age of my Property?

There are few sources of information that could be useful in order to determine the age of property, including:

Records within the 1982 Act Register – A register documenting around two thousand homes that were built before 1862
Local archives held within the local authority council, parish or local library – There are a vast range of documents held in local archives such as old telephone books, papers and maps which may help when researching details about a property

If the property is of national importance due to architectural or historic interest, it may be listed on a special register, commonly known as the status of a ‘listed building’.

Such properties are protected by law and therefore any changes to a listed building must be carefully monitored via an application for listed building consent should any alternations be desired.

The records of properties registered on the List of Buildings of Special Architectural or Historic Interest, are held by the National Heritage and are publicly available.

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How can I Find Out When My Property was Built?

The information found in public records may provide information on who owned the land or who lived in the property, however, they may not cover when the property was built for a number of reasons.

For example, there could be records of a property on the site for hundreds of years however at one point the building itself may have been damaged and therefore re-built.

Therefore, for a more accurate timeframe of when your property was built the following would be of interest:

Obtain a property survey – A property survey involves the instruction of a Surveyor to visit and inspect the property.

Obviously, there are costs involved with obtaining a property survey that would need to be considered.

Request details from the local planning office – Most developments or property changes require planning permission to be granted before they can proceed and therefore the local planning office is likely to hold documents providing a history of such changes. The local authority may charge a fee for providing copies of the data held.
Land Registry Records – The records held by the Land Registry can provide many details about a property including details of the current property owner, details of any mortgagees or other charges against the property, as well as information regarding the history of the building. Again, there will be charges to request copies of the information held by the Land Registry.
Checking Tax Records – The tax rules have changed over the years and therefore the reliability of the data is not guaranteed, however checking tax records may help pinpoint when a property was built as property taxes may have been payable. In addition, documents that record property values may also trace construction phases or extensions being added.
Property Deeds – The property deeds also contain information indicating when a property was built. Copies of property deeds can be requested from the government’s website, and again there is a small charge for the service.

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Where can I Find Out Who Were the Previous Occupiers of the Property?

The census is a survey that takes place every ten years within England and Wales, collecting data on households including details of the residents, their occupations and education level.

The data collected is used for many purposes from academic studies or to aid local policymakers and is made publicly available one hundred years after the census took place.

This data can be a great insight to discover who previously occupied property if the property is more than one hundred years old.

If the property is less than one hundred years old, the other places to look for information on previous occupiers are the local housing records and local library archives.

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When Was My House Built Summary

This post has explored the different locations that information is stored and an introduction into the process of how to request access to view the information or copies, usually for a small fee.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

Buying out a Sibling from an Inherited House

by Dax McLeanPosted on 7th May 2021 | Updated 20th January 2023

The loss of a loved one is always devastating and can lead to many challenges including mastering the UK tax and inheritance system, all whilst grieving.

However confronting the process can seem, it is worth remembering that inheriting property is actually very common and there is plenty of advice available regarding the process.

Although saying that, often the complexities are when a property is inherited between two or more siblings, resulting in decisions to be made regarding how the property is to be shared.

This article will discuss the process as well as other considerations to be thought through when buying a share of inherited property from a sibling.

What are the First Steps When Someone Passes Away?

Following the death of a family member, the first step would be to establish if a will was put in place.

If there is a will, the nominated executor of the estate will be required to apply for probate, the judicial process where the will is given consent by a court of law.

Following the grant of probate, the executor of the estate will be able to oversee the process of the evaluation of the assets that make up the estate of the loved one who
has passed away.

This process includes; settling any bills and distributing any assets that remain in accordance with the details within the will.

The typical timeframe of the process to be granted probate often can take anywhere between 4 and 8 weeks.

It is strongly advised that shortly after a bereavement, that professional advice is sought so that the family are supported throughout the process, advised appropriately and ensuring the necessary legal requirements and deadlines are met.

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Property Inherited by Siblings

Once the property has been legally inherited by siblings, there could still be decisions to be made should the property wish to be retained in the family, rather than be sold and the finances split.

Decisions would involve how the property is to be shared, for example, the type of joint ownership to be pursued with, either as joint tenants and tenants in common or should one sibling choose to move in, then the process of buying out other siblings would need to be undertaken.

In any complex scenario with siblings involved, it is highly recommended to seek legal advice so that an informed decision can be made.

One Sibling Buying out Another

Should all parties agree that the inherited property should remain within the family’s ownership but one sibling is to buy out another, then a document is required to be submitted to the land registry with both signatures of the siblings, along with the grant of probate.

The sibling seeking to buy out the other(s), will require the funds available to do so, either by cash or a mortgage offer in place.

It is also worth noting that all the usual expenses to purchase property will still be required such as legal fees, mortgage fees and stamp duty, if applicable.

As you can see, there are many factors at play with regard to inherited property and the legal and tax consequences on both sides of the transaction, and therefore it is always highly recommended that independent legal and tax advice is sought as required, ahead of any decisions or transactions.

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What Happens if Siblings Cannot Agree and a Forced Sale is Needed?

Should there be a disagreement with regards to which approach to take in relation to sharing an inherited property and communications break down, an application to force the sale of a property can be made to the courts, in certain situations.

The court application would be for an Order for Sale under The Trusts of Land and Appointment of Trustees Act 1996, as both or all siblings will hold the property under a trust of land.

Courts will review an application to force the sale of the property against the following points:

The intentions of all parties or siblings when the property was put into trust, for example when the property was inherited
The purpose of the trust
The welfare of any trustees who are minors, or those minors who may occupy the property
The interest of any secured creditors

Should the sale be needed in relation to probate, the sibling who is selling the property can also request an emergency grant of probate allowing the property to be put up for sale after 10-14 days.

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Other Considerations or Scenarios

Another situation could be that siblings inherit a property that has an outstanding mortgage in place.

Again, this can be another complex situation, that could require specialist advice and further research to be undertaken to establish if the person who has passed away had any type of life insurance policy in place that could be used to claim against and therefore pay off the mortgage.

Summary

As discussed there are many complexities when it comes to individual circumstances, family politics, the legal process and the taxes payable, and therefore seeking professional advice as soon as possible following the death of a loved one is highly recommended.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

How Long Does It Take to Release Mortgage Funds?

by Dax McLeanPosted on 7th May 2021 | Updated 20th January 2023

Buying a property can sometimes feel like a long process, from applying for a mortgage, house hunting and completing the legal process to finally getting the keys.

When a home buyer is nearing the end of this process, there may be questions regarding how and when the mortgage funds will be released.

In this article, we will explore what mortgage funds are, the process that lenders follow to release them and typical timeframes.

At What Stages are Funds Needed?

Following an offer to purchase a property being accepted by the vendor, the solicitors acting for both parties can begin the process of legally transferring the property.

When contracts are exchanged between the parties, there is a legal agreement binding the vendor and purchaser to buy or sell the property.

The contract will detail the property purchase price as well as any other terms and conditions that have been proposed by either party throughout the negotiations.

The cleared deposit funds will be needed to be with the solicitor prior to completion.

Therefore, deposit funds must be transferred to the solicitors from the purchaser. It is likely that this transaction will involve moving a large sum of money and therefore usually a specific type of bank transfer is required

Following the exchange of contract, a completion statement is generated by the solicitor, breaking down the balances owed including any stamp duty and solicitor fees payable.

Next, a transfer deed is prepared, again by the solicitor to arrange the legal change of ownership of the property and then the solicitor will draw the mortgage funds from the lender ahead of completion, to ensure that cleared funds are available for the completion.

The solicitor will send the full payment for the property to the seller’s solicitor and in return, receive the title deeds.

As you can see, there are a number of stages that take place during the process of purchasing a property and funds needs to be both received and cleared in time for each step.

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How Long Does It Take to Release Mortgage Funds?

The timeframe in which it takes for mortgage funds to be released does vary between lenders, however, it is common for funds to be released within between 3 and 7 days.

A solicitor can request the funds from the lender slightly earlier, ahead of the proposed date of completion to enable extra time for the funds to be received and cleared.

How Long can a solicitor Hold Mortgage Funds?

Each lender will have set rules regarding the duration of time that a solicitor can hold mortgage funds. If the funds are not used, either in their entirety or partially, the solicitors must return the funds back to the mortgage lender.

Money Laundering Checks

As we have discussed, time must be allowed throughout the process to ensure that funds are clear following being moved between banks.

In addition to this, checks must be undertaken to ensure the source of the funds in relation to Anti-money laundering, or AML legislation.

The AML regulations aim to stop criminals using professional services to launder money within the UK and cover a range of entities including the selling estate agent, the mortgage lender and the solicitor – therefore don’t be alarmed if you are asked to prove the source of funds multiple times.

The law stipulates that prospective mortgage applicants must provide proof of:

their identity
their address
the source of funds to comply with anti-money laundering regulations

There is an approved list of documentation that can be provided as evidence to meet the criteria of the AML checks, including passports, driving licences, bank account statements for savings accounts, mortgage in principle documentation or evidence that monies have been gifted or received in a will for example.

Solicitors may ask additional questions if needed and request further documentation in certain situations, such as if the buyer is a cash buyer.

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How can the Process be Sped Up?

The process of buying a property can feel at times, like it may never conclude, however, we have discussed there are reasons why additional checks are undertaken and the fact that funds need to be cleared in order for the next steps to take place.

Such legal processes cannot be sped up or rushed however, you can ensure that everything is in place to help the process run as smoothly as possible by:

Ensuring that deposit funds are in an accessible place and have cleared in plenty of time
Ensure that you have available funds to pay the solicitor when instructed
Ensure that funds are available to pay any additional fees such as Stamp Duty
Ensure you have proof of the source of the funds

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How Long Does It Take to Release Mortgage Funds Summary

In this post, we have explored the legal process of buying property including the steps at which cleared funds need to be available and the reasons why the sources of funds are checked.

Should you have any queries regarding your personal financial situation, or the mortgage process, please get in touch with our friendly team for further mortgage advice.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

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Does a Valuation Mean that a Mortgage is Approved?

by Dax McLeanPosted on 7th May 2021 | Updated 20th January 2023

If you are a first-time buyer, the mortgage process may be all new to you.

The terminology, order of events and approval stages may all be confusing at first.

This guide will help to clarify the stages, focusing on the property valuation including whether or not a valuation results in a mortgage approval.

What is a Property Valuation?

Firstly, let’s explore what a property valuation is, and at which stage a valuation is undertaken.

Following a mortgage application, the initial first checks are undertaken on the applicant’s backgrounds and current financial position in order for the lender to offer an agreement in principle.

This is a document confirming that the lender will provisionally lend a set amount of money for a mortgage providing that further checks, which may include a property valuation are completed and are satisfactory to the lender.

An agreement in principle is typically valid for 30 or 90- days from the date of being obtained, and therefore the remaining elements of the application process and further legal steps are to be concluded during this timeframe.

In some circumstances, an extension to the timeframe may be requested, however, the lender will consider the circumstances on a case-by-case basis, and therefore an extension is not guaranteed.

A property valuation or valuation survey is the process undertaken via approved surveyors, authorised by the lender to report back on the property’s current condition and value, in order to proceed with a mortgage.

Traditionally a surveyor would visit the proposed property that the mortgage applicant would like to purchase to undertake the survey, however sometimes these days, surveyors can rely on information found online in order to compile their assessment of the property, depending on the directions of the lender.

Some lenders will charge for the service of a property valuation to be undertaken, whilst others offer free valuations in order to process mortgage applications therefore charges differ between lenders.

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Does a Property Valuation Mean a Mortgage Application is Approved?

There are a number of situations that can result in a mortgage application being declined even once a property valuation has been undertaken, as follows:

The property’s condition – Should the surveyor report back to the lender that the property is in a condition that does not meet the criteria of the lender, this could affect the lending decision. The lending criteria can vary between lenders, however, if the property is not habitable in its current position or has structural problems, most lenders will not offer a standard mortgage against it. Should this situation arise, there may be other options to obtaining the funds such as development finance.
The property’s value – Should the value of the property change from the original estimates, the loan to value ratio in relation to a mortgage is also likely to alter. The loan to value is the ratio between the property value and the deposit or equity held and this affects the interest rate applicable.
The applicant – Lenders may still be completing various checks on the mortgage applicants during the same timeframe that a property valuation has been requested and therefore if something is found during the checks that do not meet the lending criteria, the mortgage application could still be declined. Examples include:
- An applicant fail additional financial affordability checks
- Details of a previous County Court Judgement are found, or any dishonesty of fraudulent claims are discovered.
- Personal circumstances change since the application was made such as the applicant is made redundant
- Insufficient duration of self-employed income
- Concerns involving the applicant’s rights to live in the UK

How Long does it take to Obtain a Mortgage Offer Following a Property Valuation Taking Place?

As the agreement in principle is likely only to be based on the income of the applicant(s) and the credit score(s). Further background checks of the applicant(s) and the property valuation usually follow this initial step.

The timeframe of the property valuation will vary depending on whether the surveyor visits the property or if the process is undertaken using online resources.

Should a surveyor visit the property and prepare a report following this, the valuation will usually take a few days depending on how busy the surveying practice is.

Whereas a desktop report could be undertaken and returned within a few hours. You can pay for an alternative type of valuation should a more in-depth valuation be required.

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Using a Mortgage Broker

Mortgage applicants that use a mortgage broker often find that specific, tailored advice is provided before a mortgage application is submitted, ensuring that the financial products considered are the most appropriate to them.

Brokers are able to search the market and therefore have access to a wide range of financial products and different lenders, to be able to compare mortgage terms for applicants.

Once an application is submitted to the chosen lender, the brokers remain on hand throughout the process to ensure that queries are handled promptly, and that completion takes place as soon and as smoothly as possible.

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Does a Valuation Mean that a Mortgage is Approved Summary

A property valuation takes place during a mortgage application to ensure that the condition and value of the property are as expected and meets the lender’s mortgage criteria.

Surveyors are instructed to undertake property valuations either via an in-person visit to the property or by using online resources to create a report which is sent to the lender to review.

Unfortunately, even when a property valuation is submitted, this does not guarantee that a mortgage will be approved as the lender will need to review the details of the report.

They will ensure that the property condition and value meet the lending criteria, whilst continuing with the underwriting process including further checks on the mortgage applicants.

Please feel free to get in touch with our friendly team of advisors to book an initial consultation to discuss the options available to you.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

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