13 years of helping clients buy new build properties

2024 marks 13 years since the Mortgage Light vision was realised by founder and director, Siobhan Holbrook.

Since its humble beginnings in 2011, the company has grown significantly from a 1-person business to a company that employs around 25 people. Siobhan’s business began in a small office in a local estate agency, and she quickly realised that her ability to understand the challenges that home-buyers faced, plus her experience from working in sales, enabled her to learn how to overcome objectives and the importance of relationships. She used these skills to cultivate connections with banks and building societies to get mortgage cases approved outside of policy, whilst helping her clients to understand the properties that suited their needs.

More than a decade later and the company has become a regionally recognised mortgage brokerage, whose reputation is trusted by lenders, developers, housing associations and returning customers alike. In fact, Mortgage Light has attracted over 1,153 4.9-star customer reviews, with 80% of clients returning for a remortgage.

Here, Siobhan answers some key questions on how Mortgage Light started and how the company helps people wanting to buy a new build property.

What sparked your interest in this industry and led you to set up Mortgage Light?

“Even in my earlier career as an estate agent, I really enjoyed helping people find their new home, whether being a family or moving out of home for the first time. At the time I thought the idea of home ownership was for the rich – or those really good at Monopoly! But building relationships with people and builders showed me how anybody can find a home. The only bit I needed to learn was mortgages, which I felt offered me more of a career; and this is the reason I took the plunge at 24.

I always presumed mortgages were complicated, however I realised it was just a case of understanding that it was another product tailored to the customer’s needs. In estate agency I enjoyed finding ‘the home’ for my customers. This feeling of satisfaction continued when I started in the mortgage world because I was helping people to actually buy the home. My sister has always said to me that she’s never known someone enjoy their job so much, but for me, working with all parties within the house buying process is an addiction for creating happiness for those looking to move!

I have always been passionate about home ownership and ensuring that everyone understands how to buy a home, no matter what their circumstances. The name Mortgage Light was created to reflect my company’s ethos; that we explain all mortgage terminology clearly and without complicated jargon, ultimately ensuring that the ability to buy a home is accessible for anyone and everyone.”

What would you say sets your company apart from your competitors?

“When I first started my business, I was acutely aware of the challenges small business owners had, compounded with imposter syndrome; I didn’t even know if Mortgage Light was going to be successful. However, I’ve always had a clear vision of the type of service I wanted to offer people. In the two years running up to becoming a mortgage adviser I developed the skills for structuring deals. This meant when clients came to me, not only was I able to look at a vast range of mortgage product offerings, I was also able to use a builder’s incentives to help them get a home which they may not have felt was possible. My experience allowed me to build confidence with my customer in buying off plan, which can be a daunting process. But by walking around plots with my client and understanding the builders’ specification I was able to help them to visualise their home.

Banks and building societies now come to Mortgage Light to ask us what is needed in the marketplace as currently they are changing criteria to make sure their sales targets are met. We’ve been instrumental in providing feedback on the type of mortgage products our clients need. Furthermore, because of our ability to get to know and understand our clients, we have been successful in placing cases outside of policy due to our reputation.”

What are the latest challenges that you hear customers experiencing and how do you think mortgage advisors can tackle them?

“At the moment it is evident clients are struggling with affordability. At Mortgage Light we take time to bespoke individual advice to our client. This could even mean recommending they look for another job if they’ve been in the same one for a while. This may seem a little radical, but in actual fact when we compare them against other people in the same position, we are able to highlight to them that others are getting paid more. We also give our clients confidence in approaching their employer to ask for pay rises – both these things tackle affordability issues and our advice is always appreciated by the client! Other solutions can be found within mortgage products which use family members to assist with affordability or to overcome issues around deposit. We also have a lender that will accept income from someone residing in the applicant’s home and paying ‘keep’.

A good mortgage advisor listens to the client and offers them several solutions and then guides them on the most viable option for them.”

When it comes to buying a new build, what advice can you offer to first time buyers looking for their first mortgage?

“Buying a new build is an extremely exciting process and it’s easy to get carried away! I believe it’s important when purchasing from a builder that you take time to understand the specification that you are getting from the builder. For instance, some back gardens don’t have turf as standard so it’s always best to take a step back and check if you’re not sure about something. In conjunction with this, builders have the ability to offer incentives. By structuring these, it could mean cheaper interest rates and subsequently lower monthly payments. This, coupled with lower running costs, means new build purchases are an extremely attractive proposition for buyers. I advise people to just take their time – not only to understand the home they’re buying, but also the site plan and its surroundings, and always take a moment to consider the deal which best suit your needs.”

How can mortgage advisors ensure that they protect their customers once they have secured a mortgage?

“It’s all about being transparent and giving clear and knowledgeable advice. For instance, once we’ve secured a mortgage offer for a client we will always talk to them about the benefits of protecting their investment, so life insurance, critical illness and income protection. But being a broker isn’t just about offering financial services; we support each home-buyer through the whole process, advising on things like how to keep their credit file in the best possible shape. We build strong bonds and our retention rate is really good – in fact 80% of our clients remortgage with us!”

Why would you recommend that buyers use a mortgage broker as opposed to a bank?

“Mortgage brokers have an understanding not only of the mortgage market but also the house buying process. They often have their finger on the pulse on what’s happening in the housing market and even if there’s an opportunity to negotiate. A competent broker is a valuable asset; they have a vested interest in looking after you properly and they should be there for all your mortgage needs for now and in the future. A mortgage advisor will tailor mortgage advice to suit your current situation and guide you for situations in the future, whereas a bank will treat you like a transaction and tell you about mortgage products from a screen.”

What do you think are the keys to being a successful mortgage broker?

“It’s always been important to me to ensure each and every client gets the best possible mortgage product with minimal stress and delay. I’ve trained all the brokers that work at my firm to overcome the word ‘no’ and help find a solution for customers. A client is never just another number. I feel strongly about getting to know each and every one; their motivations and their insecurities. My team take a genuine interest in getting to know each person and ensure the mortgage advice is tailored to their needs.”

Any final comments/advice to those looking to secure a mortgage to buy a new build property?

“It’s so important when buying a home that you enjoy the journey and don’t rush. When you find the new build house you’d like to buy, the feeling is amazing! A builder is a business and will want to sell to you, therefore the risk of the chain falling apart is small. In conjunction with this, if you have the opportunity of buying early enough, you get to bespoke the house to suit your taste with things like wall tiles and kitchen unit colours. You even get a home demo on how to use your house, which is especially useful for a first-time buyer as you don’t always know where the electric or gas metre is. The purchase price may be slightly more expensive than the second-hand market, however it’s worth considering that there are things that you won’t need to spend money on. For example, you won’t need to decorate and often you can structure a deal where appliances are already installed. The other big advantage of buying new is the running cost which tends to be lower, so that’s always going to be a bonus. Home buying can be a stressful process but when buying new it’s made a little bit easier. Many people find that once they’ve bought a new-build home, they’ll never go back to buying second-hand!”

For free mortgage advice, give our friendly team a call on 01908 597655.

At Mortgage Light, we’ve been arranging bespoke mortgages and assurance services for our clients for over a decade. We’ve built our reputation on clear and uncomplicated mortgage advice, which is reflected in over one thousand 4.9-star reviews. This month we’re delighted to announce the next step in our company’s expansion by officially launching our Commercial Division.

A Plethora of Finance Options

Our clients will know us for assisting with the purchase of their own home or investment properties, but many won’t be aware that we also help customers with other areas of finance too. Having seen an increase in demand for commercial finance we’re excited to be able to offer a whole plethora of finance options to service a growing commercial property market.

The new division is headed up by Alex Stoyles, Head of Commercial Lending and High Net Worth. Alex has been with us here at Mortgage Light for the best part of a decade. With Alex’s experience in financial services and the property industry, coupled with our established relationship with Lenders, we are well placed to assist clients with all manner of financing options, such as helping businesses to buy new offices or to raise funds through business loans in order to assist with growth.

Since our Director, Siobhan Holbrook, started the business over 12 years ago we’ve become a regionally recognised mortgage brokerage whose reputation is trusted by lenders, developers and home-buyers alike. Mortgage Light is recognised for providing a great service and for offering bespoke products that are not always accessible elsewhere. Our new Commercial Division will sit alongside our established mortgage services for home-buyers.

Whether you need assistance with your buy to let commercial property mortgage or you require a bridging loan, we can help.

Our Commercial Services

We can assist with a vast array of finance services including:

• Financing the purchase of a business or property
• Bridging Finance
• Development Finance
• Refurbishment
• Invoice Financing
• Asset Finance
• Complex & Commercial Buy to Lets
• 2nd Charge Loan
• Business Insurance (Business Loan Protection, Relevant Life Insurance, Shareholder Protection

For more information on taking the next steps for your business or property project, contact Alex at Mortgage Light on 01908 597655 or visit the commercial pages on our website.

If you feel that you might be ready to go out and purchase your first home – congratulations! Or perhaps you’re already a homeowner and you are looking to move onto the next property in your homeownership journey. Whatever your reason for reading this blog, if you’re ready to start looking for a property, you’ll find some useful information below.

But how can you start house hunting if you don’t know what you can afford? Before you get carried away on Right Move, it’s important to speak to a mortgage adviser. They’ll help you find out how much you might be able to borrow for a mortgage and therefore how much you might be able to spend on a property.

To give you an idea of how much you might realistically be able to borrow for a mortgage, we’re going to explain a little about how lenders calculate affordability, how much your mortgage might cost and what your next steps should be.

Speak to a mortgage adviser and broker

We would always suggest that the first step in this process should be to speak to a mortgage adviser and broker, such as us here at Mortgage Light. We will be able to guide you on the level of mortgage borrowing that you may be able to successfully apply for. This will give you an idea of what the monthly repayments are likely to be.

This should save you from applying for mortgages that you can’t afford or won’t qualify for. This can result in your application getting rejected. Bear in mind that evidence of rejected mortgage applications can affect your credit rating. This might hinder you from obtaining the mortgage deals that you do qualify for. It’s better to try and get it right the first time with the help of an experienced adviser.

Our advisers will take a look at your current income and your expected level of expenditure. That, together with the amount of the cash deposit you are able to provide, will help us work out what size of mortgage borrowing you might qualify for and therefore the price range of property you might consider looking at. We will also be able to give you an idea of the other costs you are going to need to cover. These can include valuation fees, legal fees, stamp duty and possibly lender’s facility fees.

Once we have guided you through all of this and you’ve found the property you wish to purchase, we will scan the mortgage market and make recommendations to you on the most appropriate mortgage deals. After discussing these recommendations, we’ll work with you to complete your mortgage application. We’ll then present it to the most appropriate lender. We’ll look for one which we feel gives your application the best chance of being approved.

Find out more – ‘How do I apply for a mortgage?’

How do mortgage lenders assess affordability?

When you apply for a mortgage, the first thing a mortgage lender will do is assess whether your application falls within their basic mortgage affordability criteria. Most mortgage lenders base the maximum amount they are willing to lend on a simple multiple of the applicant’s current basic annual income.

As a general rule, you can expect to be offered a mortgage up to four and a half times your annual salary. In some cases, this can be stretched higher. This is only a guide, however, and some lenders may take a more cautious approach and adopt a lower multiple. Some may be willing to go a little higher where they feel circumstances justify it. This means that if you earn £30,000 per year, you might reasonably expect to secure a mortgage of up to £135,000.

If, however, you make a joint application with your partner who also earns £30,000 per year, then this could potentially take you up to a joint mortgage of £270,000. This could be lower if you have loans or independents.

Assuming you meet this initial income multiple criteria, your application will then need to pass some further basic checks before being looked at in any detail. The next thing lenders will check is your credit history. All lenders subscribe to one or more of the major credit reference agencies.

These agencies collect detailed information about everyone’s personal credit history. From this information, they allocate everyone a personal credit score. The higher the score, the lower the credit risk you represent. The lower the score, the higher the risk you’re considered. Each lender will set a minimum score that all applicants must achieve before they will consider lending you money.

Find out more – ‘Am I eligible for a mortgage?’

What will my mortgage cost?

So, you know how much money you might be able to borrow for a mortgage. You know the budget you’ll be considering for your future property. But what does this actually mean in terms of your monthly repayments? This will depend on a few things:

• The amount of borrowing you will need
• The length of the mortgage term you choose
• The interest rate offered to you

Once you have found the property you want, let your mortgage adviser know. They will search the mortgage market for the most suitable deals available. Then, they will provide an illustration of what the monthly mortgage repayments will look like on different mortgage deals across a few different mortgage terms.

Choosing a shorter mortgage term will mean you’ll pay less interest back overall. However, spreading your borrowing out over a shorter time period will mean you’ll have larger monthly repayments. 35 years has always been considered to be the normal mortgage term. It helps to make those initial mortgage payments more affordable. Lenders are generally reluctant to provide mortgages that extend beyond the applicant’s normal retirement age. This can sometimes limit the mortgage term you are able to apply for.

Getting a mortgage in principle

Before you start house hunting, we usually recommend that you try to obtain a mortgage in principle. This is also known as a Decision in Principle (DIP) or an Agreement in Principal (AIP). It is an indication from a lender that you meet their basic lending criteria. It also gives you an idea of how much they may be willing for you to borrow for a mortgage. This ‘offer’ is based upon an initial and very basic assessment of your information. This is usually submitted by your mortgage adviser and broker.

Having a mortgage in principle under your belt before house hunting shows estate agents and sellers that you are a serious buyer. It shows that you are actually in a strong position to make an offer on a property. A mortgage in principle is not compulsory. However, many estate agents and sellers will refuse to let you view a property unless you have one.

A mortgage in principle is usually valid for between 30 and 90 days from issue. The most important thing to remember is that it is not a mortgage offer. It is only based upon that very basic assessment of your information. It’s not in any way a commitment on the part of the issuer to eventually provide a mortgage to you once you submit a formal application. If you fail to meet the lender’s criteria for any reason during their assessment process, they may well reject your application.

Find out more – ‘Mortgage in principle – what can go wrong?’ & ‘What do I need for a mortgage application?’

 

Ultimately, if you are wondering how much money you can borrow for a mortgage, we recommend that you speak to a mortgage adviser and broker, such as us here at Mortgage Light. It’s the first step on the road to getting a mortgage.

We’ve helped hundreds of people just like you to get their dream home. To get started, pick up the phone today and book a free consultation with us on 01908 597655 or contact us via our website.