Being a first-time buyer in Durham can be a very stressful thing; you might not be sure where to start, and you start hearing words you may have not never heard of before, like ‘DIP’ (decision in principle), in other words, how much a lender may be willing to offer you and ‘APR’ (Annual Percentage Rate) AKA your mortgage interest rate. We don’t like to use these jargon words; here at Protex Financial, we aim to keep things simple!

It doesn’t matter where you are in the process of purchasing your first home in Durham, whether you are just starting to think of your first purchase with no deposit saved just yet, whether you are deposit-ready and want to know how much money you can borrow, or even if you are set to put an offer in for your first home. It doesn’t matter where you are in the process; we can help guide you through the next steps, and with Protex Financial, you only pay for advice once we can ensure you that we can get you your first mortgage. 

Remortgaging in Durham is switching your existing mortgage to a new deal, while using the same property as security. You can remortgage with the same lender or a different provider – you’re not moving home, and your new mortgage will still be secured against your existing property. At this stage of your mortgage journey, there will also be multiple opportunities to re-look at your borrowing needs.

So whether you are just trying to obtain a more suitable mortgage deal in Durham or looking to access a sum of money (equity) to pay for home improvements or pay off unwanted debts (debt consolidation), Protex Financial can help guide you with your next mortgage needs.

The main thing to do when it comes to remortgaging is not to bury your head in the sand and leave your remortgage until the last minute; rates fluctuate daily, and leaving it until the last minute can either cause you to miss out on a better deal or cause your mortgage fixed rate to turn into a variable rate, which could cause costly implications.

Is it time to upscale or downsize? Is your family expanding, or do you need room to grow? Maybe you’re just looking to change your environment. Then a home-moving mortgage might be precisely the mortgage you need.

Suppose you need to increase the size of your mortgage to buy a more expensive property in Durham. You’ll also need to meet the lender’s borrowing criteria for that extra amount. We can guide you in what the best lender for moving home mortgages will be.

Ideally, the best time to move home would be when your current mortgage deal ends to avoid the early repayment charges on your current agreement. But, if you must move homes before your current mortgage deal ends, then a good suggestion would be to ‘port’ your existing mortgage and apply for an increase of funds with your current lender. Porting your mortgage is where you buy a new home but keep your current mortgage deal or rate, and you “port” your agreement from your existing home to your new one—basically, keeping your current mortgage in place and applying for additional funds.

Getting a mortgage in Durham if you’re self-employed can be more challenging because you’ll need to prove you have a reliable income. Having a reliable income when you are self-employed can come with challenges. But obtaining a mortgage when you are self-employed is undoubtedly possible. There are many ways to prove to a mortgage lender that you have a reliable income; it’s usually just a case of jumping through a few extra hoops.

For example, when you are employed, it’s a case of providing a few payslips, and you are set to go. But being self-employed or holding more than 20% in an ltd company, you will usually be asked for the following; at least 1 years ‘SA302s, and tax year overview. Yes, applying for a mortgage with only one year’s evidence is possible; you will become more limited in who you can use though.

Lenders usually view you as self-employed if you own more than 20% to 25% of a business from which you earn your primary income. You could be a sole trader, company director, shareholder, contractor, etc. If you need more guidance around self-employed mortgages and check if you are, then speak with one of our mortgage advisors today to find out.

Finding a mortgage in Durham with bad credit is difficult but not impossible. Here are some steps and considerations to help you through the process…

Assess Your Credit Situation

Credit Report: Get a copy of your credit report from all three credit reference agencies (Experian, Equifax and TransUnion) and check for errors or mistakes that may be harming your credit score. Click here to get access to a free trial for the above – Credit Report Check

Credit Score: Understand what your credit score is and how adverse it is – some lenders might still work with you depending on how bad things are.

Improve Your Credit Score

Pay Down Debt: If possible, pay off some debts, as reducing the amount owed can increase your score.

Regular Payments: Ensure all bills are paid on time every month. Doing this over an extended period will slowly improve your rating.

Correct Errors: Challenge any inaccuracies in your report with evidence. If successful, it will give it a much-needed boost.

Save for a Larger Deposit: The higher the deposit you have, the lower the loan-to-value (LTV) ratio there will be, which presents less risk to lenders – aim for at least 20-25%.

Adverse Credit Lenders: Some companies offer mortgages specifically designed for people who have encountered financial difficulties in the past; they appreciate that everyone’s situation is different so terms are more flexible than those imposed by traditional banks/building societies etc.

Mortgage Brokers: Work alongside one who has experience dealing with cases like yours. They know which providers are likely to accept, so you can save time applying elsewhere unnecessarily.

Gather Necessary Documentation

Income Proof: Provide evidence of steady employment/income, e.g., payslips covering several months plus corresponding bank statements or possibly a letter from the employer stating salary/contract terms, etc.

Explanations: If anything negative appears on the file, especially if there were mitigating circumstances (e.g., redundancy due to illness), explain what happened and why things are better now.

Check Eligibility Criteria: Different lenders have different rules about who they will lend money to; don’t waste time on applications that are doomed from the start, as this can further harm future credit rating.

Consider a Guarantor Mortgage: If someone close to you has good credit and is willing to act as a guarantor for part or all of your loan, it could significantly increase your chances of success.

Higher Interest Rates: Be prepared to pay more each month due to the greater risk associated with bad debt history loans. 

Final Tips

Seek Professional Advice in Durham: If you are still unsure about how to proceed, seek independent financial advice tailored to your requirements/objectives, so you are armed with the best knowledge possible before making important decisions affecting long-term affordability/security, etc.

Patience Is Key: It’s unlikely that someone suddenly goes from having terrible ratings one week to walking away with a perfect deal the next day…give the process time to work itself out. Don’t rush into anything without fully understanding the implications of signing up for something that won’t be able to maintain repayments. 

A buy-to-let mortgage is often an excellent option for people looking to invest or actively enter the Durham property market. Whether it’s your first time in property management or you’ve been building up a portfolio of properties, the right buy-to-let mortgage can unleash your investment potential.

A buy-to-let mortgage is for people who want to buy a property in Durham, whether a house or a flat and then renting that property out to tenants. Buy-to-let mortgages generally need a larger deposit than residential mortgages, usually between 20-30%, and the interest rates can be typically higher.

With a buy-to-let mortgage, the amount you can borrow depends on how much you expect to earn in rental income and the size of your deposit. Also, you must fit some specific criteria to be eligible for a buy-to-let mortgage; for instance, it will be easier if you have a good credit history and don’t have significant current debt levels, mainly if you apply personally or become a guarantor when completing a business (SPV) buy-to-let mortgage application.

Deciding to apply for a mortgage in Durham but in a company name? Not a problem.

A buy-to-let mortgage is often an excellent option for those looking to invest or actively enter the property market. Whether it’s your first venture into property management or you have an established portfolio, the right buy-to-let mortgage can unlock your investment potential.

A buy-to-let mortgage is designed for individuals or companies looking to purchase a property, be it a house or a flat, with the intention of renting it out to tenants. These mortgages typically require a larger deposit than residential mortgages, generally between 20-30%, and often come with higher interest rates.

With a buy-to-let mortgage, the amount you can borrow is based on the expected rental income and the size of your deposit. To be eligible for a buy-to-let mortgage, you must meet specific criteria. For example, a good credit history and manageable current debt levels are advantageous, particularly if you are applying personally or acting as a guarantor for a business (SPV) buy-to-let mortgage application.