Scottish Mortgage Podcast

If you own a property in your sole name and you don't have a will, you could be exposing yourself and your loved ones to a range of risks. Without a will, you won't have any say in how your property is distributed after you die, which can lead to disputes, legal battles, and unintended consequences.

In this post, we'll explore the risks of not having a will when you own a property in single names and why it's important to take action to protect your assets and your loved ones.

What is a will?

A will is a legal document that outlines how you want your assets to be distributed after you die. It can also appoint an executor to manage your affairs, nominate guardians for any minor children, and provide other important instructions.

Why is a will important when you own a property in single names?

If you own a property in your sole name and you don't have a will, your property will be distributed according to the laws of intestacy. This means that the government will decide who gets your property, based on a set of rules that may not reflect your wishes or your family's needs.

For example, if you're unmarried and you don't have any children, your parents may inherit your property. If your parents are deceased, your property may go to your siblings or other relatives, even if you're not close to them or you don't want them to inherit your property.

If you're married or in a civil partnership and you don't have any children, your spouse or partner may inherit your property, but they may not inherit all of it. Depending on the value of your estate and other factors, your spouse or partner may only inherit a portion of your property, with the rest going to other family members.

In some cases, the distribution of your property may also be delayed, which can cause financial hardship and emotional stress for your loved ones.

How can a will protect your property and your loved ones?

By creating a will, you can ensure that your property is distributed according to your wishes and that your loved ones are taken care of after you die. You can appoint an executor to manage your affairs, specify who should inherit your property, and provide instructions for any other matters that are important to you.

For example, if you're unmarried and you want your partner to inherit your property, you can specify this in your will. If you're married and you want your spouse to inherit all of your property, you can also specify this in your will, along with any other important instructions, such as who should inherit your personal belongings or how your funeral should be arranged.

Creating a will can also help to avoid disputes and legal battles between family members, which can be costly, time-consuming, and emotionally draining.

Conclusion

If you own a property in your sole name and you don't have a will, you could be exposing yourself and your loved ones to a range of risks. By creating a will, you can ensure that your property is distributed according to your wishes and that your loved ones are taken care of after you die. If you're unsure how to create a will, it's recommended that you seek the advice of a qualified estate planning attorney who can guide you through the process and help you to protect your assets and your family's future.

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Getting a mortgage can be a daunting task for many people, especially if you're a first-time buyer. But there are steps you can take to improve your chances of getting approved for a mortgage, and one of the most important ones is to be proactive and get ahead of the game. In this article, we'll go over some of the things you can do to increase your chances of getting approved for a mortgage on the first try.

1. Get a copy of your credit report

The first thing you should do when you're considering applying for a mortgage is to get a copy of your credit report. This will give you an idea of what lenders will see when they review your application, and it can help you identify any potential issues that might need to be addressed before you apply.

There are many ways to get a copy of your credit report, but one of the best options is to use a multi-agency search service like Check My File. This service checks your credit report across all three major credit bureaus (Experian, Equifax, and TransUnion) as well as other sources of financial data, giving you a comprehensive view of your credit history.

1. Share your credit report with your advisor or bank

Once you have your credit report, it's a good idea to share it with your mortgage advisor or the bank you're planning to use for your mortgage. This will give them a chance to review your report and help you determine which lenders might be the best fit for your circumstances.

In some cases, your advisor or bank might be able to identify issues with your credit report that you weren't aware of, and they can help you address them before you apply for a mortgage. This can save you time and hassle down the line, and it can improve your chances of getting approved for a mortgage.

1. Check your personal information

When you review your credit report, make sure to check all of your personal information, including your name, address, and date of birth. If any of this information is incorrect, it can cause issues with your mortgage application, so it's important to get it corrected as soon as possible.

Check your bank statements, credit cards, and personal loans to ensure that your address is correct. Even small errors like misspelled names or missing middle names can cause problems, so it's worth taking the time to double-check everything.

1. Use your credit responsibly

Using your credit responsibly is one of the most important things you can do to improve your chances of getting approved for a mortgage. This means staying within your credit limits, making payments on time, and avoiding any negative marks on your credit report.

If you have credit cards, make sure to keep your balances low and pay them off in full each month. Avoid applying for new credit cards or loans before you apply for a mortgage, as this can lower your credit score and make it harder to get approved.

1. Close any unused accounts

Finally, it's a good idea to close any unused credit accounts you have before you apply for a mortgage. This includes old credit cards, store cards, and any other accounts you're not actively using.

While it's true that having access to credit can improve your credit score, leaving unused accounts open can also leave you vulnerable to fraud. If you're not monitoring these accounts regularly, it can be difficult to detect fraudulent activity, which can cause problems down the line.

Closing unused accounts can also simplify your financial situation and make it easier to manage your credit overall.

Conclusion

Getting approved for a mortgage can be a stressful and complicated process, but there are steps you can take to increase your chances of success. By getting ahead of the game and reviewing your credit report, sharing it with your advisor or bank, checking your personal in

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The Basics of Mortgages: A Guide to Home Ownership

If you've always dreamed of owning your own home, but don't have the cash to do so, a mortgage might be the solution you're looking for. But what exactly is a mortgage? How does it work? And what are the risks involved? In this blog post, we'll answer all of your questions and give you a comprehensive overview of the basics of mortgages.

What is a Mortgage?

A mortgage is a loan secured against a property that enables you to purchase it. Simply put, it's a big loan against a house that the bank uses as security in case anything goes wrong. The bank can repossess the house or force you to sell it to get their money back.

Mortgages are usually taken out over a long period of time, such as 15 or 35 years. This allows you to pay off the large amount of money involved in a mortgage over time. The most common way to make the monthly payments is through direct debit.

What Do Lenders Consider When Reviewing a Mortgage?

When considering a mortgage, lenders will take into account a number of factors to determine whether or not they will lend you the money. Some of the most notable factors include:

• Income and expenses: Lenders will take into consideration your income and expenses when deciding to lend you money. They'll want to make sure you have enough money coming in to make your monthly mortgage payments on time.
• Age: Lenders will also consider your age when reviewing your mortgage application. They'll want to make sure you'll be able to pay off the mortgage before you retire.
• Length of time: The length of time the mortgage is over will also be taken into consideration. Generally speaking, the longer the mortgage is over, the lower your monthly payments will be, but the more interest you'll pay in the long run.
• Deposit: When you buy a property, you'll usually be expected to provide a deposit. This deposit can be as low as 5% of the property's value. There are some options out there where you may not need any of your own money for a deposit, but we'll talk about those in more detail later.

Risks Involved in Taking Out a Mortgage

While taking out a mortgage can be a great way to achieve your dream of home ownership, there are risks involved. If you don't make your monthly payments on time, your home could be repossessed. This means the bank will take control of it and force the sale to get their money back.

To avoid this risk, it's important to make sure you're paying your mortgage payments on time. This isn't always easy, especially if you're dealing with unexpected expenses or a reduction in your income. However, there are ways to minimize the risk, such as:

• Make a budget: Make sure you have a clear understanding of your income and expenses so you can create a budget that works for you. This will help you stay on top of your monthly mortgage payments.
• Consider a fixed-rate mortgage: With a fixed-rate mortgage, your interest rate and monthly payments are locked in for a set period of time. This can provide you with peace of mind and help you avoid any surprises when it comes to your monthly mortgage payments.
• Get a mortgage with a prepayment penalty: Some mortgages come with a prepayment penalty, which means you'll have to pay a fee if you pay off your mortgage early. This can be a good way to avoid missing payments and the risk of repossession, as it forces you to keep up with your payments.
  Make extra payments: If you can, try to make extra payments towards your mortgage whenever possible. This will reduce the amount of interest you pay over the life of your mortgage and help you pay it off faster.
  Get a loan: If you're struggling to make your mortgage payments, you may consider getting a personal loan to cover your expenses. This can be a good option if you have a good credit scor

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Mortgage and principle, also known as decision in principle or agreement in principle, is a term that refers to a preliminary evaluation of a borrower's creditworthiness by a lender. This evaluation is conducted to determine the likelihood of the borrower being approved for a mortgage loan. Estate agents and builders often require borrowers to have an agreement in principle before they reserve a property, as it provides evidence that the borrower is able to secure a mortgage.

In this blog post, we will take an in-depth look at mortgage and principle, what it is, how it works, and why it is important. We will also explain the difference between a soft check and a hard check, and what borrowers should expect during the evaluation process.

What is Mortgage and Principle?

A mortgage and principle is an informal evaluation of a borrower's creditworthiness, conducted by a lender to determine whether or not they will lend money to the borrower. This evaluation is conducted before the borrower submits a full application for a mortgage loan. It is important to note that a mortgage and principle is not a guarantee that a borrower will be approved for a mortgage loan, but it is a good indication of the likelihood of approval.

How Does Mortgage and Principle Work?

When a borrower applies for a mortgage and principle, the lender will conduct a preliminary evaluation of the borrower's credit and financial situation. This evaluation typically includes a review of the borrower's credit score, income, employment status, and other financial obligations. Based on this information, the lender will make an informal judgment on whether or not they will lend money to the borrower.

The estate agents and builders who are involved in the property purchase process often require borrowers to have an agreement in principle before they reserve a property. This is because it provides evidence that the borrower is able to secure a mortgage loan and is a serious buyer.

Soft Check vs Hard Check

There are two types of checks that may be conducted during a mortgage and principle evaluation: a soft check and a hard check. A soft check is a quick evaluation of the borrower's credit and affordability, and does not leave any footprints on their credit report. A hard check, on the other hand, is a full credit check that can impact the borrower's credit score.

A soft check is conducted by a lender to quickly evaluate the borrower's credit and affordability. During a soft check, the lender will review the borrower's credit score, income, employment status, and other financial obligations. This evaluation is not as intrusive as a full check, and does not leave any footprints on the borrower's credit report. This means that other lenders will not know that the borrower has applied for a mortgage loan.

A hard check, on the other hand, is a full credit check that is conducted by a lender when a borrower submits a full application for a mortgage loan. During a hard check, the lender will review the borrower's credit report in detail and will let everyone know that they are checking it. This can impact the borrower's credit score and make it more difficult for them to secure a mortgage loan in the future.

What to Expect During the Evaluation Process

During the evaluation process, borrowers should expect the lender to review their credit score, income, employment status, and other financial obligations. Borrowers should also expect the lender to conduct affordability checks to determine whether or not they can afford the mortgage loan.

It is important to note that the scoring process can change after a full application is submitted, and the decision in principle can change. This is because some lenders may check different credit agencies during the evaluation process than they do during the full application process.

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Are you thinking of selling your home in the UK in 2023?

But when is the best time to sell your home in the UK? In this episode, we'll discuss the factors that affect the best time to sell, as well as the specific months of the year when you're most likely to get a good price.
https://www.theadvisory.co.uk/house-selling/best-time-to-sell-house/

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