Help to buy case study with bad credit

Posted on 10th May 2021 | by Neil Alexander

The customers came to us via our website mortgage enquiry form. They were looking for their first mortgage, they also needed to buy via the Help to Buy scheme.

Despite a few credit problems in the past, we were determined to help the couple and their 5 children purchase their first home.

We sourced the market and using our expert knowledge, of which lenders will accept bad credit, we successfully placed the mortgage. We completed all the mortgage paperwork with the customers, help with the solicitors and the family have now completed and moved into their new home.

Having previously rented, they are now paying their own mortgage with the assistance of the Help to Buy scheme.

At a glance

Using our mortgage enquiry form they were able to get an idea of the mortgage they could afford and monthly payments?
Getting a mortgage using the help to buy scheme
Customer had credit problems (bad credit) and we were still able to find a mortgage for them.
They were a big family that we helped move from renting to owning a home.

Names only were changed in this case study to protect identity

First time buyer mortgage and NHS key workers

Posted on 29th March 2021 | by Neil Alexander

Our brokers have a wide range of access to mortgage products on the market, including The Heroes Mortgage range introduced by a specialist lender. The product range includes mortgages for first time buyers, home movers and those looking to remortgage. These specialist mortgage products are designed for the Heroes among us, the essential workers that provide vital community services:

NHS Clinicians (including Paramedics & Nurses)
Teachers
Armed Forces Personnel (Army, Navy, Royal Air Force)
Firefighters
Police

This mortgage range recognises and understands that these roles rarely take on a 9-5 outlook and treats each case individually. With flexible lending criteria, the Heroes mortgage range is designed to help make our essential workers homeowners.

Mortgage loans of up to 5x income, subject to affordability
Overtime and second job income included in overall income
Limited credit history considered
Bad credit accepted
Debt Management Plans (DMPs) considered

Case Study

Mortgage Enquiry

The customers came to us as first-time buyers and both NHS key workers, they currently rented a property. They wanted to buy their first home but where in a debt management plan (DMP) so struggle to find a mortgage themselves. The property they liked was going to be their forever home, so the really wanted to secure it for their future.

Completion date: 5/02/2021

	Balance	Payment	Product	Term
New Mortgage	£195,600	£1,091	2-year fixed rate	25 years

Solution

We arranged a mortgage via a lenders ‘Hero’ Help to Buy range, which is specific for key workers and gives a few additional allowances to be accepted for a mortgage. The customers used a 5% deposit, that was in the main gifted from family. Customers now happy in their new home 😊

Watch our video on the mortgage application process

Free initial advice on all mortgages*

See how much your mortgage could cost using our live mortgage calculator – please note, mortgages may differ depending on your circumstances.
*Fee’s may be payable if you decide to progress with a full application.

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

Remortgage with Poor Credit – The Facts

Posted on 26th March 2021 | by Neil Alexander

Are you thinking about remortgaging? Are you unsure what that term means? Are you worried your credit score may let you down or even prevent you from remortgaging altogether?

We’re here to help. In this article, you’re going to learn:

What remortgaging is
Why you might do it
What we mean by a credit score
How to remortgage with low credit score

Whats in this section

What does it mean by remortgaging?

What reasons can I remortgage for?

What is a UK credit score?

Can you remortgage with poor credit?

Do I need a credit check to remortgage?

What you need to know before remortgaging

Should you use a broker to remortgage?

Remortgage Calculator

Are there alternatives to remortgaging?

What does it mean by remortgaging?

The basic idea of remortgaging is to leave your current mortgage deal and swap to another one. A remortgage means switching to a different lender for the whole mortgage, including any extra you’re taking out.

In the case of a possible remortgage bad credit scenario, it is vital to understand that it may still be possible to get a remortgage. A poor credit score may include one or more of the following events:

Missed payments (on the mortgage or other loans including credit cards)
Defaults
CCJs (county court judgments)

The more negative events you have on your credit record, the lower your credit score is likely to be. You can repair it, but this can take time.

Even if a remortgage isn’t possible, there are other possible solutions Clever Mortgages can help with. We’ll come to those later in this article.

What reasons can I remortgage for?

There are many reasons why homeowners consider remortgaging their property. Some people may wish to remortgage to take advantage of equity in their property. This means the property must be worth more than the amount on the mortgage. Statistics show that in December 2019, 16,820 remortgages were taken out with extra borrowing involved.

Here are some of the main reasons you may do this. Incidentally, you may remortgage for more than one reason, for example to consolidate debt and release a little more on top for another purpose.

Debt consolidation

The interest rate on a personal loan, car loan, credit or store card can be higher than that paid on a mortgage. If you’re paying a lot of money each month to meet these kinds of repayments, consolidating them into your mortgage could reduce your monthly expenditure.

However, it is always important to balance any potential monthly savings with the cost of adding the debts over the term of the mortgage. Be aware that any unsecured debts consolidated will become secured on the property.

A mortgage broker can talk you through this and assess the best option for you.

Home improvements

This could mean a new extension, whether over one or two floors. You may want to add a separate garden building to create a working from home space (something that could become more popular post pandemic). You may simply wish to convert part of your existing property to improve it or use it for another reason. For instance, you may convert a cold conservatory into a working from home space by adding underfloor heating and new furniture.

To free up cash for a family member’s house deposit

If you’re a parent wanting to help a child with a deposit for their own home, you may remortgage to access some of the equity in your own home.

To take advantage of a lower interest rate

The Bank of England base rate is currently lower than at any other point in history. We cannot assume it will stay that way forever, but if your current mortgage was taken out when interest rates were higher, you may find better deals on the market now.

To begin to rebuild a credit file

If you’ve had too much debt in the past and you’ve struggled to repay it, you may have gone onto a debt management plan. If so, you may wish to remortgage to consolidate this. in doing so, you could start to rebuild and improve your credit file.

To save money on monthly repayments

Not all reasons for remortgaging involve additional borrowing. In some cases, it’s all about getting a better rate on the current mortgage with a lower monthly repayment. If you’re on a standard variable rate and paying too much each month, a new deal could see you switch to cheaper monthly repayments. Over the lifetime of the loan, this could lead to a far lower amount of interest paid on the mortgage.

What is a UK credit score?

A credit score is a three-digit number applied to an individual. It tells lenders whether an individual is a high or low risk candidate for any kind of loan. It is slightly different from a credit rating, which indicates where you sit within various bands used by a lender. These bands or scales aren’t the same at all lenders, hence why there are situations where people may be rejected by one lender and accepted by another.

What is a good credit score?

Different credit rating agencies in the UK work on different numerical systems. For example, Experian goes up to 999, and anything between 881-960 is deemed good. At Equifax, the score goes up to 700. A good score with them is between 420-465.

What is a bad credit score UK?

A fair credit score with Experian starts at 721, so if yours is lower this will dip into poor or very poor territory, depending on how low it goes.

Equifax’s fair territory begins at 380, with anything below that deemed poor or very poor.

Can you remortgage with poor credit?

Yes, although your range of lenders may be smaller. Fortunately, Clever Mortgages specialises in helping those with poor credit find the right remortgage. We can guide you to the best lenders in the marketplace – ones you may not be familiar with. It’s common to find interest rates are higher on higher risk remortgages like these, but we’ll scour the market to find a competitive deal for you.

Do I need a credit check to remortgage?

If you switch to another deal with the same lender without asking to borrow more money, then no, you shouldn’t be credit checked. However, if you want to increase your mortgage or change to a new lender, any lender that considers you for a remortgage will want to know you are credit worthy. This will involve checking your credit score and assessing your suitability.

What you need to know before remortgaging

Firstly, if you’re approaching the end of your existing mortgage deal, make sure you start looking for a replacement deal three or four months ahead of the expiry date. If you don’t, your lender may switch you to their standard variable rate, which can be higher than getting another deal.

Next, make sure you shop around. Many people want to get a competitive deal as it could save them money each month, and more over the life of the mortgage. Some lenders may waive certain fees (such as arrangement fees), but they may charge a higher interest rate.

An experienced broker can weigh up different offers and consider all the figures and calculations before recommending one or more of the most competitive deals. This can take a lot of hard work out of the process for you. You may wade through lots of small print and miss some crucial facts, whereas a broker will know what to look for and how to accurately compare different deals.

You should also consider any charges involved with moving your mortgage. If you switch before you reach the end of your existing mortgage deal, there may be early repayment charges. A broker can advise on all relevant charges involved in remortgaging, both with your current deal and the one you may switch to.

Should you use a broker to remortgage?

There’s plenty to think about when you’re considering a remortgage, especially a bad credit score remortgage. There are plenty of lenders out there today, from banks to building societies you’d recognise the names of, through to smaller more specialist lenders. If you’re looking to remortgage with low credit score, you may benefit from our experience in this area. We specialise in helping those with bad credit. We can identify which lenders are most likely to approve each client in their unique situation.

Remortgage Calculator

Current mortgage details

Current Property Value £

Current Mortgage Balance £

Current Loan To Value %

Current Mortgage Term (yrs)

yrs

Current Mortgage Interest Rate %

Summary

Your current monthly payment should be (based on the information you have entered)

£{{ !isNaN(current_repayment_basis) ? current_repayment_basis : 0 | currency }}

(repayment basis)

New mortgage details

Additional borrowing amount £

Total new borrowing £

New Loan to Value %

New mortgage term (yrs)

yrs

Do you have Bad Credit? *

Yes

Summary

Your new estimated monthly payment could be

£{{ new_estimated_monthly_payment | currency }}

This payment is based on the best rate achievable from your information and is intended as a guide only. Subject to credit score, lenders criteria and approval, your actual payment could be higher.

Representative Example:

Mortgage amount £170,995 (including £995 lender fee), 64 payments of £748.30 at a fixed interest rate of 2.28%, followed by 236 payments of £889.60 at a variable rate of 4.24%. Over a term of 25 years, giving a total amount payable of £258,861 at an APRC of 3.6%. The contract will be secured against your property.

Are there alternatives to remortgaging?

Yes, so if you’re unable to go for remortgaging with bad credit, there are still options to think about. These include:

A further advance with the same lender
A product transfer, i.e., switching to a different mortgage product with the same lender to get a better deal
A secured loan, i.e., taking out a loan backed by your property if you have enough equity in it to support this option

If this all sounds complicated, don’t worry. Clever Mortgages has extensive experience in helping our clients find the best remortgaging possibilities for their needs. And in cases where a remortgage isn’t possible, we can assist in exploring other options as shown above.

The idea of remortgaging can be overwhelming. Even if you think you may be able to save money if you change to another deal, you may be worried your low credit score may let you down. By coming to Clever Mortgages, you can take advantage of our expertise and knowledge in helping people tackle remortgaging with bad credit. Get in touch with us today to find out more. You could be closer to finding a suitable deal than you think.

More than just a Mortgage Broker

Posted on 22nd March 2021 | by Neil Alexander

Are you constantly looking on Rightmove for that next move, a foot on the ladder or just for inspirational home improvement ideas? If so, you are not alone.

According to Rightmove, there was over 152 million visits to site in January 2021 and a 39 percent rise on those figures in February 2021.

It’s clearer than ever that people are seeing this year, with lenders returning to the higher LTVs (loan to value), lending market and the stamp duty extension, as a chance to think about moving home or getting their foot on the property ladder.

Where do I get a mortgage from?

The next big question people then ask themselves is where the best place is to get their mortgage from.

Typically, you have a couple of choices, do you go direct to your bank or shop around using a mortgage broker?

Whether you are buying your first home, moving or refinancing there is a lot of things to consider, from what is the best deal for me, what do I qualify for, should I choose a fixed rate or discount, what even are fixed and discounted rates. How long should I take my mortgage over, how does that impact me and the overall cost, how much can I really afford to borrow?

Most clients using their bank have a good knowledge of the mortgage market and how it works, they may be on their second or third move, they are also confident that they wouldn’t get a better deal elsewhere. Using a bank means you only get access to the mortgage products they offer and no one else’s. For example, you go and see lender A, they can offer you lender A mortgages only and not lender B or Cs.

What does a mortgage broker do?

Mortgage Brokers act as the middleman between you and lots of lenders, they are very experienced in shopping about and getting the best deal for their client’s circumstances. Using the same example above, they can look at products from Lender A, B, C, D etc, they can also compare them against each other to get the most suitable solution for you.

Most brokers work with a large variety of lenders, including the banks, building societies, private mortgage companies and some specialist lenders, which allows for a wide range of choice and range in products.

This can save you valuable time especially if you get in touch at the start of your home search where they can prequalify you with a lender and strengthen your buying power with the estate agents and builders.

A mortgage broker’s advice is bespoke to you whatever your circumstance, so whether you have had credit issues in the past, a low credit score or just would like someone to do all the legwork for you they are the ideal people to speak to.

Using a mortgage brokers is even more important if you’re in a chain or have a tight timescale as they will know the lenders who will process the application the quickest. They do the hard work for you!

Your mortgage broker has a duty of care to you as already mentioned they are independent of the lenders and are working on behalf of you and not the lenders. They also know the background criteria of the lenders they deal with and can exert influence when chasing the case in a way you just couldn’t do yourself which could be invaluable should things get held up.

For more information read our ‘why to use a broker’ blog

Watch our video on the mortgage application process

Which broker to use?

Over the years, Clever Mortgages has placed over £350 million worth of mortgages, helping clients all over the United Kingdom.

We are telephone based so you’re not tied to having to attend a face to face appointment, however we do have video technology if you would like to put a face to the name.

The initial advice from the team is Free of Charge and you will be stepped through the whole mortgage process ensuring we can find you the best deal on the market for your individual needs. A fee will only become payable if you decide to proceed with a mortgage.

We have an amazing support team who deal with you from initial enquiry until the day you get your keys and beyond. Ensuring you are recontacted at the end of any fixed rate or discount period to ensure you continue to be on the best mortgage possible for you.

Clever Mortgages niche has been helping clients that are maybe considered by the banks and lenders as a ‘higher risk’ such as ex IVA, DMP, bad credit, ex bankrupt, self-employed or clients with low credit scores. Although this is their specialism, we deal with many demographics of clients who refer their family and friends repeatedly.

There are several ways you can contact us from telephoning us on 0800 197 0504, live chat on our website to using our online forms to arrange a call back.

Our website is also full of very useful information including an affordability calculator and guides that will take you through the steps to obtaining a mortgage.

So, if like many you dream of that new property, want a better deal on your mortgage or would like to consider home improvements then get in touch today.

Free initial advice on all mortgages*

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

The 95% Mortgage Government Backed Scheme: What You Need to Know

Posted on 19th March 2021 | by Neil Alexander

The March Budget took place amid the ongoing coronavirus crisis. The pandemic has seen many areas of our lives affected. Those effects extended to mortgages too. Those eager to own their first property discovered the available options for 95% mortgage and remortgages virtually disappeared.

So, the most welcome headline in the Budget was the announcement of a Government-backed 95% mortgage guarantee scheme. This follows other Government initiatives such as Help to Buy. According to Government statistics, over 681,000 households have taken advantage of such schemes to buy a home since 2010. This new scheme is set to begin in April 2021 and will run until December 2022.

Here, we’ll cover the scheme in more detail, exploring what it means for a customer and how it will work.

Whats in this section

What is the 95% mortgage scheme?

How will the 95% mortgage scheme work?

Do I qualify to use the scheme?

What is the stamp duty holiday?

Is it good to go through a mortgage broker?

Can I look for properties before speaking to a broker?

What is a UK credit score?

What are the benefits of using a mortgage broker?

Why is the first payment on a mortgage always higher?

What other fees are included in mortgage?

What is the 95% mortgage scheme?

A 95% mortgage allows the buyer to borrow a maximum of 95% of the property price. This is known as the loan to value amount. It refers to the percentage of the loan compared to the value of the property price.

So, if a property is priced at £350,000, 95% of that value would be £332,500. The scheme allows buyers to get a 95% mortgage to buy their home. You may also see this written as 95% LTV (loan to value).

You may also know this as a 5% deposit scheme. They’re both ways of describing the same thing. Looking at it from this angle, based on the same example property price we gave above, the 5% deposit would be worth £17,500.

How will the 95% mortgage scheme work?

From your viewpoint, you’ll be able to buy a home with a 95% mortgage. This means you need only find 5% of the value of the property, with the lender supplying a loan covering the rest.

The government has designed the scheme as a cushion against potential losses the lender might suffer because of offering the 95% loan. This only applies above 80% of the property value.

This won’t affect you, however. From the outside, a 95% mortgage backed by the scheme will look the same as one without this backing. They’re protecting the lender against major losses by offering the scheme.

Since the 95% mortgage deals dried up as COVID-19 took hold, the scheme puts those 95% deals back on the market again.

Do I qualify to use the 95% mortgage scheme?

There are conditions that must be met for you to be eligible for the scheme. All standard requirements, such as affordability and a suitable credit score, will still be valid. Here are some other important criteria you’ll need to meet:

You must be looking for a residential mortgage for your primary home (no second homes allowed)
Maximum property value is £600,000
The loan to value percentage must be between 91% and 95%
You must take out a repayment mortgage during the dates the scheme is live – interest-only loans won’t qualify

All properties, from flats to houses, are available under the scheme. However, you cannot qualify with a buy-to-let mortgage. It also covers everything from new builds to old properties.

Free initial advice on all mortgages*

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

What is the stamp duty holiday?

The stamp duty land tax holiday was introduced by the Government in July 2020, as part of a raft of measures to support people throughout the pandemic. The March Budget saw Chancellor Rishi Sunak extend the tax break.

It was originally intended to end on 31^st March 2021 but has now been extended until 30^th June 2021. It means that no stamp duty is payable on properties worth up to £500,000 up to that date.

Following this date, zero stamp duty is payable on properties worth up to £250,000. The value of the property above this sum, up to £925,000, will be subject to 5% stamp duty. Higher property values will incur rates of either 10% or 12% on the remaining portion of the value.

Read what is stamp duty

Is it good to go through a mortgage broker?

A mortgage broker can help you understand how a 95% mortgage works and how this scheme might help you afford your own home.

It’s important to know how much you can afford to borrow based on affordability. You need to know how much you earn each year (along with your partner’s income if you are applying for a joint mortgage).

Clever Mortgages has a convenient calculator you can use to get an idea of how much you could borrow. We also supply an example of how much your monthly repayment could be if a lender offers you a mortgage at a certain interest rate.

By plugging in just a few simple figures, you can see what you may be able to afford.

Why use a mortgage broker

Can I look for properties before speaking to a broker?

Yes, but it’s often best to seek advice first. You may have a rough idea of how much you could borrow, but a broker will be able to supply you with far more accurate figures.

At Clever Mortgages, we can discuss affordability with you and suggest the maximum amount you may be able to borrow. We can highlight a range of figures most likely to be offered by a UK lender.

What is a UK credit score?

Your credit score is based on your history of credit agreements and repayments. It is displayed in three digits. The higher the number, the better your score.

According to Experian, one of the main credit scoring companies in the UK, a score of 721 and over is considered average. If your score reaches 880 or above, it is considered a good score. This means it will help support an application for a mortgage (or indeed another type of loan).

If you are thinking about applying for a mortgage, it’s a great idea to get a copy of your credit file first. Few people know their credit score, so your file will give you an idea of how lenders might view you in terms of risk.

At Clever Mortgages, we can obtain a copy of your file on your behalf. We can check your eligibility for a mortgage before you officially apply. As brokers, we’re experienced in understanding what lenders look for. We can also highlight any potential issues with your credit file, so you can take steps to resolve them. This could help improve your application chances later. We also specialise in helping people with poor credit find the right mortgage lender.

Have a low credit score? read more here

What are the benefits of using a mortgage broker?

All mortgage brokers must be qualified to provide advice and recommendations. They must also abide by strict regulations laid down by the Financial Conduct Authority (FCA).

A broker could help you find a competitive 95% mortgage deal. They will know which lenders offer these deals and how they compare to each other. Brokers also know far more lenders than the average individual. We tend to stick with what we know. So, if you go it alone, you may find you are missing out on some of the most competitive 95% mortgage offers on the market today.

A broker will also know which lenders are most likely to accept applicants like you. Perhaps you have your eye on a property with a thatched roof. You may be looking at a new build. Or did that listed cottage catch your eye?

Some lenders won’t offer mortgages for all these examples. The brokers at Clever Mortgages can steer you in the best direction. We can compare mortgages from over 100 lenders.

Why is the first payment on a mortgage always higher?

This can come as a surprise if you are not familiar with how mortgages work. Most people accept they will have a monthly payment to meet on their mortgage.

The first one occurs on whichever day you choose to make your payment, starting the month after you move into your property. However, you are charged interest on your loan from the day you move in.

For instance, let’s assume you move into your home on 20^th March. You want to pay your mortgage on the 1^st of each month. So, your first payment would be on 1^st April and it would include interest charged between 20^th March and the date of your first payment.

What other fees are included in mortgage?

A mortgage illustration document must list all the fees involved with that mortgage. These may include an arrangement fee, valuation fee, and booking fee. They are variable and you may not always get all fees included with all mortgages.

For example, a lender may waive an arrangement fee. However, this may mean the interest rate is slightly higher to compensate. This means you could end up paying more over the mortgage term.

If you decide to arrange a mortgage through a broker, they will either charge you a fee or work on commission paid by the lender. At Clever Mortgages, we’ll make sure you know exactly where you stand before you go ahead, no matter your financial position.

Stamp duty holiday extended and 95% mortgages now available

Posted on 3rd March 2021 | by Neil Alexander

Whats in this section

Who is the Government’s mortgage guarantee scheme for?

What type of property can I buy under the new Government scheme?

How do I apply for a mortgage under the new scheme?

What is Stamp Duty?

What is the Stamp Duty holiday?

What is a 95% LTV mortgage?

How can Clever Mortgages help me?

As a result of the pandemic there have been very few low deposit mortgages available. If you, like many, would like to get onto the property ladder, or move home, but have been struggling to source the deposit funds needed, then help could now be on hand.

Today (3 March 2021) the Government announced during the Budget a new scheme that 95% mortgages are now available for first time buyers and current homeowners to buy properties up to £600,000 with just a 5% deposit.

The Stamp Duty holiday has also been extended until the end of June for properties up to the value of £500,000, which could save you thousands of pounds – and provide a much—needed financial relief.

The Government’s new mortgage guarantee scheme is set to launch in April and is there to help if you’ve been unable to secure and mortgage due to lenders asking for such large – and unreachable – deposits.

If you want to move home, but currently feel like it’s an unreasonable pipedream, then the Government’s new mortgage guarantee scheme could provide you with light at the end of tunnel:

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

Who is the Government’s mortgage guarantee scheme for?

The Government mortgage guarantee scheme is for people and couples of any age who want to buy their first home or move but cannot afford to save up a large deposit to secure a mortgage.

What type of property can I buy under the new Government scheme?

You can buy any type of property, such as house, flat or bungalow, as long as it will be your main home – and not one to rent out or act as a second home for example. The scheme also isn’t restricted to new-builds, so you can choose and buy the property of your dreams, whether it’s old or new.

How do I apply for a mortgage under the new scheme?

These 95% mortgages will be available through a range of lenders, and you will apply in the same way as any other mortgage – but of course, you will only need a 5% deposit.

What is Stamp Duty?

Stamp Duty is the tax you pay when you by a residential property or piece of land in England and Northern Ireland.

What is the Stamp Duty Holiday?

The threshold for anyone buying a home and having to pay Stamp Duty was initially increased from £125,000 to £500,000 until the end of March. This has now been extended until the end of June. Following this, the threshold will decrease to £250,000 until the end of September and back to £125,000 from October onwards.

What is a 95% LTV mortgage?

A 95% mortgage (also known as a 95% LTV mortgage) is a mortgage to purchase a property with a small deposit (at least 5% of the purchase price). Your deposit is the amount of money that you need to put into the mortgage to make up 100% of the final purchase price.

For example, if you wanted to purchase a property at £200,000, you would put in £10,000 and a mortgage lender would lend you £190,000 to purchase the property.

How can Clever Mortgages help me?

Here at Clever Mortgages, we have access to hundreds of lenders and so can help you find the right mortgage based on your circumstances. There are so many different mortgages available so we will do all the hard work for you. We’ll find the right lender and product for you, guiding you every step of the way to help you buy your new home.

Speak to us now!

Why use a mortgage broker?

Mortgage brokers help you find the best deals on the market – not just from one lender. With a broker you can expect:

Valuable knowledge, through years of experience helping customers to find mortgages
An improved chance at finding a mortgage, some mortgages are only available through a broker
Help with the application process, as usually just one application can be used across various lenders
Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage

About Clever Mortgages

We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:

With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
Our team know the lenders that are most likely to say ‘yes’, and give you the best rates

What should I do next?

You enquire online with us today or request a call back
Our simple form takes a couple of minutes to fill in, this gets the ball rolling

One of our experts will give you a call to find out more about your situation
We have experts in remortgaging, who focus solely on helping customers save money

We do all the hard work for you
We search the market for the trusted lender that’s right for you

Our expert will get back in touch
We can guide you every step of the way, and we’ll always keep you up-to-date with progress

Speak to a broker

Laura Connor

Laura is a specialist mortgage broker, whose been working for Clever Mortgages for 5 years and has over 11 years experience in Financial Services.

Call us on: 0800 197 0504

See our FAQ page

What happens when applying for a mortgage?

Posted on 2nd March 2021 | by Neil Alexander

Have you ever wondered what happens when applying for a mortgage?

Below, we break this down into 6 simple steps. Although applying for a mortgage can seem daunting and confusing, there are simple steps you can follow to make sure you understand the basic application process.

Below, we look at the main steps for applying for a mortgage and what you might need to think about.

Clever Mortgages specialise in helping people find the best mortgage possible for their current situation, no matter what your past or current credit history is. Speak to one of our advisors if you have any questions.

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

What is a mortgage broker?

A broker is a Financial Conduct Authority (FCA)-regulated professional who specialises in finding mortgages for people. They do this by taking your circumstances into account and learning about your situation before recommending the best mortgage deals for you.

Why use a mortgage broker?

Mortgage brokers help you find the best deals on the market – not just from one lender. With a broker you can expect:

Valuable knowledge, through years of experience helping customers to find mortgages
An improved chance at finding a mortgage, some mortgages are only available through a broker
Help with the application process, as usually just one application can be used across various lenders
Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage

About Clever Mortgages

We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:

With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
Our team know the lenders that are most likely to say ‘yes’, and give you the best rates

What should I do next?

You enquire online with us today or request a call back
Our simple form takes a couple of minutes to fill in, this gets the ball rolling

One of our experts will give you a call to find out more about your situation
We have experts in remortgaging, who focus solely on helping customers save money

We do all the hard work for you
We search the market for the trusted lender that’s right for you

Our expert will get back in touch
We can guide you every step of the way, and we’ll always keep you up-to-date with progress

Speak to a broker

Fran Jones

Fran is a specialist mortgage broker, whose been working for Clever Mortgages for 7 years and has over 8 and a half years’ experience in helping customers with bad credit.

Call us on: 0800 197 0504

See our FAQ page

Government to launch a new 95% mortgage scheme for first time buyers and home movers with a 5% deposit

Posted on 1st March 2021 | by Neil Alexander

Exciting news was received over the weekend, for prospective first-time buyers and those who would like to move home, but only have a deposit of 5%. It appears the Government is going to announce a new 95% mortgage scheme in this week’s budget.

We still await full details of the scheme, but early news is telling us, that it will launch in April and will allow both first time buyers and home movers to buy a property up to £600,000, whilst putting down just 5% deposit, that being £5,000 per £100,000 borrowed.

For example, with a purchase price £200,000 – the deposit would be £10,000.

With people struggling to save and savings interest rates being low, a scheme is needed to get people on to the property ladder. The Governments plan is to turn ‘generation rent’ into ‘generation buy’, although they also need to meet targets of building affordable homes to allow people to purchase.

It will be interesting to see which lenders take up this scheme with the Government and what the lending criteria will be. Some lenders already offer 95% mortgages, when the help of a ‘guarantor’, typically a parent, adds security and backing. Lending will still be subject to the normal assessment of affordability, sustainability, and credit checks.

Even if you have bad credit or a low credit score, Clever Mortgages can look at options for you and will find a lending solution if there is one available.

Along with this, we could also see the Stamp Duty Land Tax holiday extended by 3 months, again, we wait further details to see who may benefit from this extension.

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

First Time Buyers with bad or low credit score

Posted on 11th February 2021 | by Neil Alexander

Finding a mortgage for a first-time buyer with poor credit can be difficult. Most first-time buyers want to borrow more than 85%, which can massively reduce their lending options.

Having a bad or low credit score will make getting a mortgage a little trickier, this has also been exacerbated over the last year due to tightening of lenders criteria, Clever Mortgages are specialist in this area. As a mortgage broker, we have extensive experience in assisting first time buyers with previous credit issues including missed payments, CCJs, IVA’s and defaults. We provide impartial mortgage advice to first time buyers, including those who have been turned down elsewhere.

A lot of lesser-known lenders not found on the high street specialise in bad credit mortgages, many of which can only be accessed by an experience Mortgage Broker. A Specialist lender doesn’t necessarily mean high interest rates therefore they can be an affordable option for many struggling to fit the mainstream lending criteria.

What do I need?

There are a few things that any lender will need to consider before offering you a mortgage and you will need to be up-front about these details with your specialist advisor, so they can find the right lender and the best deal for your circumstances. No matter what caused your bad credit, whether it was a missed payment, a default, or a CCJ, your lender will need to know:

When did the bad debt happen?
How long ago was it?
How much was it for?
What was it for?
Have there been attempts to settle the debt?
How much are you able to put down as a deposit?
What is your current income?

By speaking to a specialist early in your search they will be able to ascertain the above information and let your know the best options for you, this could include explaining the other types of purchase options you may have, including Shared Ownership and Help to Buy.

Quite often another issue facing first time buyers is whether or not they will be able to borrow enough to purchase the property they want. Clever Mortgages can be your first port of call when you start looking to purchase your first home, you can gain and insight on how much you can afford and the cost of the mortgage via our ‘Enquiry Form’. We can also access your credit report for you which will speed up the process and give you an insight into your lending options.

Clever Mortgages have experience and expertise in complex and difficult cases and can find the best lenders for your circumstances. We can also provide useful information on managing your credit while you are planning to apply for a mortgage and buy your first home.

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Use our free interactive mortgage form to tell you.

Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

Additional reading

https://www.clever-mortgages.co.uk/mortgage-guides-and-advice/can-i-get-a-mortgage-with-a-low-credit-score/

https://www.clever-mortgages.co.uk/latest-news/90-percent-loan-to-value-loan-to-values-starting-to-return-to-pre-pandemic-levels-as-lender-confidence-grows/

A Guide to Affordability

Posted on 11th February 2021 | by Neil Alexander

Mortgage lenders have traditionally used income multiples to decide how much you could potentially borrow, this calculation can sometimes produce an affordability ‘gap’ because house prices have risen beyond these calculations.

However, in more recent times, many have based their maximum borrowing based on ‘ability to pay’, which sometimes allows applicants to borrow a little more. This will inevitably be subject to circumstances such as your credit file, whether you have had bad credit in the past and other elements such as If you have a family and other commitments.

The type of mortgage product could also affect this decision as well, such as a fixed rate mortgage, because the monthly repayments stay the same for a period of time, which is easier for borrowers to manage and budget for.

Affordability can also be down to the property you are looking to purchase as well, if you are looking to refurbish a property it would be never advisable to borrow to your maximum affordability limit as this would hamper any desire for making the improvements you wish to make.

The more money you borrow from your mortgage lender, the higher your credit score typically needs to be. There are still plenty of options for First Time Buyers whose affordability wont quite stretch to their desired lending amount due to credit issues or a low credit score.

Here are some of the most commonly-used First Time Buyer methods.

Family Deposit Support

The bigger your deposit, the better the mortgage you can access. For this reason, a high percentage of first-time buyers are often gifted money by family members to put towards their deposit. This could not only get you onto the housing ladder quicker and there is varying options from straight forward gift to placing the deposit in a special savings account with the bank or securing it on the family home if this is mortgage free.

The Help To Buy mortgage deposit scheme.

Under this scheme, you can borrow up to 20% of your property’s value from the government to add to your 5% mortgage deposit. There are several terms determining your eligibility for this scheme, so it’s important to talk to us to understand these before applying.

Lifetime ISAs.

Help to Buy ISA’s were a way of saving to get the deposit to buy your first home. You could earn interest on the money you deposited into the account and if you used the ISA for the deposit on a house the government would boost your savings by 25% contributing up to a maximum of £3,000 towards it. The most comparable product now available is the Lifetime ISA, and further details can be found at https://www.gov.uk/lifetime-isa

Clever Mortgages have experience and expertise in complex and difficult cases and can find the best lenders for your circumstances. We can also advise you on your affordability while you are planning to apply for a mortgage and buy your first home.

0800 197 0504

0800 197 0504

At a glance

Case Study

Mortgage Enquiry

Solution

Watch our video on the mortgage application process

Free initial advice on all mortgages*

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Whats in this section

What does it mean by remortgaging?

What reasons can I remortgage for?

Debt consolidation

Home improvements

To free up cash for a family member’s house deposit

To take advantage of a lower interest rate

To begin to rebuild a credit file

To save money on monthly repayments

What is a UK credit score?

What is a good credit score?

What is a bad credit score UK?

Can you remortgage with poor credit?

Do I need a credit check to remortgage?

What you need to know before remortgaging

Should you use a broker to remortgage?

Remortgage Calculator

Current mortgage details

Summary

New mortgage details

Summary

Are there alternatives to remortgaging?

Where do I get a mortgage from?

What does a mortgage broker do?

Watch our video on the mortgage application process

Which broker to use?

Free initial advice on all mortgages*

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Whats in this section

What is the 95% mortgage scheme?

How will the 95% mortgage scheme work?

Do I qualify to use the 95% mortgage scheme?

Free initial advice on all mortgages*

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

What is the stamp duty holiday?

Is it good to go through a mortgage broker?

Can I look for properties before speaking to a broker?

What is a UK credit score?

What are the benefits of using a mortgage broker?

Why is the first payment on a mortgage always higher?

What other fees are included in mortgage?

Whats in this section

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Why use a mortgage broker?

About Clever Mortgages

What should I do next?

Laura Connor

Have you ever wondered what happens when applying for a mortgage?

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

What is a mortgage broker?

Why use a mortgage broker?

About Clever Mortgages

What should I do next?

Fran Jones

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

What do I need?

How much could you borrow?

Wondering how much you could potentially borrow and how much a mortgage might cost you?*

Additional reading