Frequently Asked Questions.
Our job is to answer questions. We love it! We could do it all day long. Here are some that we hear day in, day out. Hopefully you will find what you need and, if not, just give us a call!
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Check out our Frequently Asked Questions below to find answers on some of the most common questions that we get asked.
How do I get a mortgage?
You need to start by knowing you can afford to borrow. Contact a reputable mortgage advisor who can search the whole market to find you the best deal (it’s how the majority of mortgages in the UK are arranged) and ensure that you have all the necessary documents to hand. For a handy guide that will help you get your head around the mortgage process, click here.
What is “mortgage affordability”?
Mortgage affordability is the term used by lenders to assess a person’s financial position in order to ascertain how much they can reasonably afford to spend on a mortgage each month. Every lender will have their own criteria for this calculation and will stress test the results at varying levels.
Find out more about mortgage affordability.
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What is “Loan to Value”?
Loan to Value (LTV) is the amount you are borrowing expressed as a % against the overall value of the property. For example, if you are buying a property for £100,000 and you are borrowing £90,000. The loan to value will be 90% meaning you require a deposit of £10,000.
What is a “Mortgage in Principle”?
Also known as an ‘agreement in principle (AIP) ’ or a ‘decision in principle (DIP)’, these are non-binding certificates issued by a lender following a credit check. They confirm that ‘in principle’ a mortgage may be offered. This agreement is not final and does not relate to a specific property. It is based on a surface-level assessment of a candidate’s affordability and credit history at the time it is run. A full application would still need to be made in order to achieve a formal mortgage offer.
What is an interest only mortgage?
Rather than pay off your mortgage as you go along, with an Interest Only mortgage you will only be paying the interest. This can work out to be a cheaper monthly payment but means that at the end of the term you will not own the property and will therefore need to pay off the mortgage with a lump sum or switch to a repayment mortgage.
How do I get a Residential Mortgage?
Most banks and building societies offer residential mortgages. Application requirements and interest rates will vary. You can either research the various mortgage products yourself or find an experienced mortgage advisor to do it for you.
What is a Buy-to-Let Mortgage?
A buy-to-let mortgage is required for a property that you do not intend to live in but instead will rent out in order to make a profit.
How much can I borrow?
How much you can borrow will depend on your income, whether you have any financial dependents, your monthly financial commitments, your age and the property you are looking to buy. There may also be additional considerations depending on which lender you are borrowing from.
How much deposit do I need to buy a house?
Depending on your circumstances, you will need a minimum of 5% of the value of the property.
Watch this video about deposits for buying a home
Can I get a mortgage if I’m self-employed?
Of course! It is possible to get a mortgage if you are self-employed. Most lenders will need to see proof of 2-3 years of income. However there are lenders who can work with just 1 year of earnings.
Can I get a mortgage if I’ve been self-employed for less than 3 years?
Yep! The longer you have been self-employed the easier it will be to prove your income. Ideally you will need to show 2-3 years of accounts or tax year overviews but if you have less, there are still lenders who will be willing to lend to you. Just give us a call.
Find out more about getting a mortgage if you haven’t been self-employed for long.
Which is the best lender?
No lender is ‘better’ than the others. The key is in finding the right lender for you individual circumstances.
How long does it take to get a mortgage?
Usually 6–8 weeks but it can be longer or shorter depending on how quickly you are able to submit all the relevant documentation and on the current service levels for your chosen lender. A good adviser will take into account your aspirations and lender timescales when making a recommendation.
Watch this video to learn more about which documents you need to get a mortgage
Which documents will I need to get a mortgage?
It depends on how you make a living. For employed applicants it will be payslips. For the self employed, lenders will generally want the Tax Calculation (SA302) and corresponding Tax Year Overviews. If you are a Ltd Company Director then the latest 2 to 3 years full company accounts will be required.
What is stamp duty?
Stamp Duty – or Stamp Duty Land Tax to give it its full name – is a tax charged on the transferal of property within the UK.
Find out more about Stamp Duty by downloading our free guide for first time buyers.
How much stamp duty will I need to pay?
This depends on your circumstances, however HMRC have a handy little calculator you can use here
How can my family help me to get on the property ladder?
Many people now use the help of family to enable them to buy a home. There are a range of possibilities from simply gifting a deposit to jointly going on a mortgage to help boost the overall income.
Find out more about how your family can help you to buy a home.
What is a product transfer?
When you reach the end of your current mortgage term, your existing lender will offer you a new product to stay with them. If you choose to stay with your lender but switch to the new product, this is known as a Product Transfer.
What is an offset mortgage?
An offset mortgage allows you to connect your mortgage with your savings. Rather than have all your money earning interest on a mortgage, you keep some in a separate special Offset Savings Account and your lender does not charge you interest on this amount. In some cases, this can lead to lower monthly mortgage payments and potentially enable you to pay off your mortgage sooner.
Can you get a mortgage on a property with an annexe?
Buying a property with an annexe can cause some complications in the mortgage application process. The lender will want to consider the size of the annexe in relation to the main residence and also, what the annexe is likely to be used for. It’s well worth seeking expert advice if you need a mortgage on a property that has an annexe. An experienced mortgage advisor will know which lenders are likely to look favourably on your situation.
Find out more about mortgages for properties that have an annexe
Why is my mortgage application taking so long?
There are many factors that can slow down a mortgage application. Firstly, there may be documents pending that the mortgage lender needs from the applicant before they can proceed with the case. There can also be long lead times if a particular lender is experiencing a high number of mortgage applications at the time.
Find out more about how long it takes to get a mortgage offer
Is it free to speak to a mortgage advisor?
It should usually be free to have an initial consultation with most mortgage advisors. However, some mortgage advisors will charge a fee in order to progress the mortgage application through to completion.
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Insurance?
We can’t predict the future. We don’t know what is around the corner.
The world is full of heartbreaking stories of people dying prematurely, becoming ill or having serious accidents. Should this happen to you it is likely that you would want to minimise the financial stress that unfortunately accompanies such events.
We will discuss with you the various ways and means you can protect yourself from losing your home should the worst happen. We appreciate it is not an uplifting conversation to have however not addressing these risks could make a terrible situation even worse.
We will advise on how to protect yourself and your family in the event of death, loss of income and serious illness and will tailor our advice to your individual circumstances.
As with all insurance policies, conditions and exclusions will apply
