Member Article

Making your way safely through the mortgage minefield

AN increase in house prices and a rise in the number of first time buyers taking their place on the housing ladder are both indications that confidence is returning to the property market.

The number of buyers joining the UK property market for the first time rose by 22 per cent to 326,500 in 2014, which comes on top of a 23 per cent increase the previous year.

At the same time, though, the latest research shows that it remains difficult in the wake of the recession and a change of attitude by the big high street banks to get the mortgage needed to buy a property.

The number of mortgage approvals made to home buyers actually fell to its lowest levels in almost a year-and-a-half in November 2014 according to the Bank of England.

The bank’s research reveals that some 59,029 approvals for home loans with a collective value of £9.6 billion were recorded for house purchase, marking the lowest monthly total seen since June 2013 – this despite the fact that many experts are heralding the return of a healthier housing market.

But leading South Yorkshire Mortgage expert Daniel Bailey, of Middleton Finance, says there are ways to negotiate a successful path through the mortgage minefield.

“Most people will start looking for a mortgage online but, despite what the adverts may claim, it’s difficult to make a serious comparison this way or fully understand the range of deals that are available,” said Daniel.

“The process for getting a mortgage now is very different to what it was before the recession and that is why it is advisable to seek the help of a mortgage broker.

“Mortgages are based on affordability so the bank will want to look at all your outgoings rather than just your income figure and there is much more paperwork to provide now to satisfy them that you can afford the amount you want to borrow.

“Be it a £25,000 mortgage or £1 million, the process is now the same and can seem daunting to somebody who has no experience of dealing with financial institutions.”

Daniel, a graduate of Sheffield Hallam University, spent several years working in the financial industry before launching Middleton Finance in 2009.

“Basically, experience has shown me that there are three main things you should do when looking to get a mortgage,” Daniel explained.

“First, get yourself a detailed credit report, an easy indication to potential lenders of whether or not you a good risk.

“Second, do have a very clear idea of how much you can realistically afford to pay every month and make sure that you keep within that budget when looking for your dream home – it’s no good looking at castles when you can only afford a studio apartment.

“And third, do seek the help and support of a good mortgage adviser – with their support you’ll be surprised at the range of deals that are still available beyond the big high street lenders.”

To find out more about Middleton Finance visit www.middletonfinance.co.uk

This was posted in Bdaily's Members' News section by John Highfield .