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The GRN Financial Services Blog!

 

Full of expert information and advice to keep you up to date with all of the latest mortgage and financial services that we offer

The information contained within our blog is correct at time of publication but is subject to change.

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Writer's picture: Aga - Mortgage BrokerAga - Mortgage Broker

More and more of us think of extra income sources and investing in properties might be the right way to boost income or provide yourself with a retirement income or asset.

We often meet customers who are a bit unsure and who think it is very difficult to start.

Although, as with any other business, there are risks related to an investment, let’s focus on the positives and answer some of frequently asked questions!


First of all how big deposit does one need to buy a house to let? Typically, around 25% of purchase price needs to be presented as a deposit. It can be your savings, a gift or it can be capital raised on remortgage from another property, for example your residential home.


Secondly, do I need to earn certain income to get a buy to let mortgage? Yes, some lenders do require that you earn income of ca. £25k annual income however others don’t! There are so many lenders and so many options that you had better speak to a mortgage broker is you want to become a landlord sooner rather than later.


Should I consider interest only or capital repayment type of mortgage? It depends on your investment strategy and long-term plan. Both options are possible but it will have to be well thought through.


The above are just a couple of questions being asked and there is loads more! Although a mortgage broker cannot dictate your investment strategy, we can help you by showing you options and assessing your circumstances. Contact us for more information if you would like to become a landlord/landlady.

GRN Financial Services Limited is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority Our fees and charges vary depending on the Services we provide to you. We typically charge a fee of £350. Some of products and services may not be regulated by the Financial Conduct Authority. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE




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Writer's picture: Aga - Mortgage BrokerAga - Mortgage Broker

When you are buying a house and putting a deposit for the purchase, source of funds for deposit must first be evidenced. This is due to Anti Money Laundering Regulations (AML) as the lender must be sure that you are using legal source of funding towards the purchase.

Usually, most common source of deposit is own savings which can be easily evidenced by bank or savings account statements, typically, from the last few months but there is no limit as to how many months back you will be asked to provide.

Second most common source of deposit used for mortgage is a gift. It can be one from a close blood relative, e.g. a parent or a sibling, but some lenders would also accept gifts from others who are not so closely related. In case of a gift, a donor must also provide their bank statements to evidence that they legally owned the money and they need to provide a form of ID as well as a letter stating this is a true gift, not a loan and that they do not expect any interest in the property for this.

There may be other sources of deposit like capital raised on another property, inheritance money or very rarely, a loan which can be accepted by only one or two lenders.

Source of deposit needs to be evidenced to a broker, solicitor and a lender.

If you have any questions about his or any other aspect of a mortgage or house buying process, feel free to contact us.



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Writer's picture: Aga - Mortgage BrokerAga - Mortgage Broker

A customer contacted us to say they took a loan half way through their mortgage application😱….This nearly gave us a heart attack as it might have ruined the whole plan of a successful so far case! So much preparation, hours of work, customer’s hopes they would soon be in new home – all might have come to nothing! Why?


Any material change that happens in between a mortgage offer and the moment you collect your keys to new home must be reported to the lender ❗️

Lender reserves the right to do pre-completion credit checks and any such thing as a new loan or car finance or outstanding balance on credit card can be detected, which may mean your mortgage may not be affordable any longer…


This is one of the things you shouldn’t do once you have mortgage agreed – DO NOT TAKE A NEW LOAN!!!


What else could jeopardise the whole home buying plan?

📌Change of a job

📌Reducing your working hours

📌Getting into arrears or having a CCJ registered

There is, however, one thing you SHOULD ALWAYS DO…it is to speak to a mortgage broker first before you do anything.👩‍💻🧑‍💼


Should you have any questions about a mortgage, feel free to speak to us. We are here to help.

www.grnfinancialservices.co.uk




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Contact details

GRN Financial Services

Mortgage broker

15 Bath Street,

Leek

ST13 6JQ 

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REMEMBER! YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

OUR FEES and charges vary depending on the services we provide to you. We typically charge a fee of £499 payable on mortgage offer.

Some of the products/services shown are not or may not be regulated by the Financial Conduct Authority.

GRN Financial Services Ltd is a company registered in England and Wales. Registered number: 11200120. Registered office: 15 Bath Street, Leek, Staffordshire, ST13 6JQ. GRN Financial Services Limited is an appointed representative of PRIMIS Mortgage Network, a trading name of Personal Touch Financial Services Ltd. Personal Touch Financial Services Ltd is authorised and regulated by the Financial Conduct Authority. GRN Financial Services Ltd accepts no responsibility for any loss or damage resulting directly or indirectly from the use of the content on this website. The content of this website is aimed at UK based customers only.

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