Your full-service mortgage brokerage and property finance specialists
Hello. Welcome to DNA Financial Solutions. We are here for all your financial needs. Whether you are looking at buying your first home, moving to a new house or whether you are first time or an experienced landlord looking to finance your buy to let portfolios, we can be with you every step of the way.
We are a single-source solution and can offer advice that will help you in all aspects of property financing. We are specialists in complex cases, whether that be self-employed with one years accounts or if you are looking for a mortgage with bad credit history, we can advise you in the best way possible according to your personal circumstances.
Whether you’re a first time buyer looking to get on the housing ladder with a 95% mortgage, an existing home owner wanting to remortgage, a landlord looking for a buy to let mortgage, if you’re self employed or even if you’ve had poor credit in the past, then we can offer advice on a mortgage to suit your needs. If you are struggling with affordability due to restrictive income multiples on a first charge then it’s worth considering a second charge mortgage. In light of tax changes to investment properties, as of April 2017 more and more professional landlords are looking down a limited company buy to let route by setting up a Limited company SPV to reduce their tax liabilities.
Development finance is unique as no two projects are the same and it of course requires a lot of time and dedication. Conventionally development finance is used by experienced property developers but is not essential to a lender, as they can take a look at every type of situation as everyone has to start somewhere.
If you’ve had poor credit or bad credit in the past, we don’t want to let it get in the way of your future. Just because you may have had issues with credit before, this doesn’t mean you’re not entitled to re-assessing your financial matters. We have numerous lenders available that specialize in catering for people that may have had a hiccup on their credit file. Everyone is unique, and just because your circumstances may be different to others, doesn’t mean you should be hindered when obtaining a mortgage.
Getting on the property ladder can be difficult so using Help to Buy can be a useful resource to owning your first home. *With a ‘Help to Buy: Equity Loan’ the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
* Paragraph extracted from https://www.helptobuy.gov.uk/equity-loan/equity-loans/ and is correct as of the 24/09/2019 – this is subject to change.
We are experienced in dealing with various aspects of bridging finance, whether you’re looking to purchase a property at auction, beginning a property development project or if you’re looking long term then a property investment loan could be what you’re looking for. If you have found your dream home but you’ve not found a buyer for your current home then a bridging loan can allow you to purchase your new residential property quickly, meaning you don’t have to miss out on the perfect home for you and your family. Alternatively if you’re looking to downsize your property and again you don’t have a buyer in place then bridging finance gives you the flexibility you require.
Limited companies are a vehicle to purchase buy to let properties. There’s lots of useful information in respects to limited company purchases that can be accessed through Which: https://www.which.co.uk/news/2019/04/will-setting-up-a-limited-company-give-you-a-cheaper-buy-to-let-mortgage-rate/ *
Have a look and get in touch for your tailored recommendation. * Correct as of the article date 5th April 2019 and is subject to change
An income multiple is what a lender occasionally uses to calculate a maximum figure they can look to lend you for a mortgage, for example; 4.5x income multiple on an income of £30,000 per annum would amount to a £135,000 mortgage. This however could reduce when the overall affordability of an application is looked into. Details such as monthly commitments on both household costs, bills etc, along with unsecured credit commitments such as credit cards or car finance will all have a bearing on what they lender deems to be ‘affordable’. Lenders have tightened their affordability models and how they assess a mortgage application and therefore it is now key to ensure that consumers are comfortable with mortgage repayments.
A mortgage term is the total number of years in which you have taken the mortgage over. The term that you take isn’t just a ‘pluck a figure out of thin air’ arrangement, and is something you need to consider seriously. It goes without saying the longer you take the mortgage term, the more interest you will pay, so it’s in your best interest to keep the term as low as possible on this basis. That said, it’s not always that easy as having a shorter mortgage term as the term itself can have a significant bearing on the amount you can borrow and the monthly repayments. The length of the mortgage should always be specific to your needs and not simply a generic figure.
This is also known as ‘decision in principle’ and is an agreement from a mortgage lender confirming whether they are willing to lend. They will base this assessment on the information provided to them initially, a credit search & an affordability assessment. When purchasing a property it is usually a preferred requirement that you have had an agreement in principle to show that you can borrow the funds required.
This all depends on your personal circumstances. Many factors go into making a decision on how much you are eligible to borrow from a lender when enquiring about a mortgage. These include ‘income multiples’ (please see above what is an income multiple section for more details), your credit score (please see what is a credit score section above for more details), your overall finances – how much you currently have as unsecured debt, how many dependents you have, what mortgage term you will be looking at, what product you will consider and last but certainly not least your income. These are just a few of the factors taken into consideration, but as professional mortgage specialists, we can help advise you on your mortgage needs.
This again is a generic term used in the mortgage industry to simply state whether something is affordable or not. I.e. based on the information provided, is it reasonable to assume you can afford to keep up with the repayment. Again, various factors come in to play when assessing the overall affordability as mentioned above in ‘what is an income multiple’ & ‘what is a mortgage term’.
A credit score is statistical data that determines your credit position. There are 3 more commonly known credit referencing agencies; Experian, Equifax and Call Credit, all of whom report data to give you an overall score. There are various factors that can impact your score these include; missed payments or defaults on your finances, not being on the electoral register, too many searches being carried out on your file within a short period – all of which can have a negative impact on your score. Being on the electoral register, keeping up to date with your payments and not being over indebted (being too reliant on credit) can improve your score as well as other factors. As well as lenders using credit scoring from these credit referencing agencies, they also conduct their own personal internal score on you as a client to make a decision on whether to lend money or not.