FAQ’s

1.       How much stamp duty will I pay

This will depend on the purchase price of the property and whether it’s your first home or an investment property. We have a stamp duty calculator on our website, please click here to find out the cost of your purchase.

2.       How much on average to solicitors charge to complete a house purchase

Every solicitor will charge a standard legal fee of between £350-£750 depending on the house price. You will have to pay search fees and various other standard costs but all these will be quoted on the proposal form from them. Always ask if it includes VAT as you will need to add 20% to cost of the legal fees. We can provide you with estimates and instruct someone who we trust if you wish, just ask us for a quote when you speak to us.

3.       How much deposit do I need to purchase a property?

The minimum deposit is 0% but most people start with 5%. Your mortgage rate will get better the more deposit  you have and therefore your mortgage payment will be lower. The average deposit is 10% of the intended purchase price.

4.       How much can I borrow

Every lender is different and will accept different types of income so you usually get different mortgage amounts from every lender. That’s where we come in as we know which lender will give you the best rate, amount and take into account every part of your income to get you that perfect mortgage amount.

5.       What rate can I get

This will depend on how much money you have has a deposit or how much equity you have in your property. The more you have the better your rate and vice versa. It doesn’t usually come down to your credit file as lenders will either accept you as a customer or decline you.

6.       What’s the difference between fixed and tracker rates?

If you would like to know exactly what your payments are every month without increases or decreases in interest rates, a fixed rate mortgage is what you need. If you wish to benefit from decreases in the bank of England interest rates, a variable rate is your preference..just remember rates can increase as well as decrease over time.

7.       What’s the maximum term I can have my mortgage over?

The max term on a mortgage is 40 years but this will depend on your age and how you plan to make your mortgage payments when you reach retirement which is usually 70.

8.       Why would I choose a mortgage with mortgage fees or without mortgage fees?

Better rates usually come with higher fees and how much you borrow could affect your mortgage payments. It is best to compare your mortgage rate with a fee and without a fee so you can see the difference in the payments by adding a mortgage fee to your mortgage balance. Usually a mortgage below £100,000 is better without a fee (individual circumstances may differ and its best to get advice on this subject)

9.       I’m self-employed, can I get a mortgage and what do I need to provide

Just because you are self-employed doesn’t mean you cannot get a mortgage, lenders do not treat you differently, they will just ask you to evidence your earnings. Most lenders will ask you to obtain your SA302’s from the Inland Revenue for the last 2-3 tax years. A quick phone call to HMRC will solve this and you will have the documents you need in around 7 Days. Even with 1 years accounts getting a mortgage maybe possible. If you are unsure please get in touch to discuss in more depth.

10.   In the past, I have had credit problems, can I still get a mortgage

Even though you have had credit problems, this doesn’t mean you can’t get a mortgage. You will need to provide your credit report so we can see where things went wrong and if we have a mortgage lender that could look at your circumstances in a positive light. You will need a higher deposit usually starting with 15% of the purchase or valuation of the property and have an explanation of what happened. Even if you have been declared bankrupt, taken out an IVA or have an active debt management plan, you may be able to still get a mortgage so its always best to get some advice and drop us an email or call.

11.   I’ve only just started my new job, do I still qualify for a mortgage

Mortgage lenders understand that people swop, change and get new jobs so as long as you can provide us with your employers details, a payslip if you have one or a copy of your contract. You should be still be able to get a mortgage. Even if you are in your probation period, there are lenders that will consider a mortgage. We would advise on speaking with one of our mortgage advisors as everyone’s employment circumstances are different.

12.   Can I remortgage to get some home improvements done or lower my outgoings

You can look to increase your mortgage for various different situations, it’s always

best to ask first as not all circumstances are acceptable.

13.   I getting divorced, can I buy out my partners share of the property so I can stay in the property.

This is possible depending on your current mortgage lender assessing the affordability of the mortgage payments just on your income. They may not agree to let it happen but other lenders may have a different approach so it’s always best to get full mortgage market appraisal before agreeing to anything.

14.   Can I use my child tax credits, working tax credits and child benefit to boost my income?

Every lender has a different approach to what income they will accept and at what percentage i.e. 50% of overtime, 100% of your Tax Credits. Our mortgage advisors know which lender is best to use in complex income cases and which lenders will accept certain income types. We would always advise getting in touch to discuss this.

15.   What insurances do I need to take out for my mortgage?

The only insurance you need to take out is Buildings Insurance as your new mortgage lender will insist on this. The other types of insurance are optional but we would always recommend you discuss this with us beforehand so you can decide whether you would like to put these in place to protect you and your family.

16.   Can you get a mortgage on a property that needs renovation?

Yes this is possible, with the correct mortgage company so we would advise before you do anything to speak to a mortgage advisor. Auctions are becoming more popular to buy properties at but you can make mistakes so we would advise getting in touch with us to discuss first.

17.   What is an AIP or DIP ?

An agreement in principle or Decision in principle is the first step in getting your mortgage approved. Most estate agents will ask for this upfront in order for you to make an offer on a property so it’s best to get this done before you start your property hunt so you know what you know what you can and cannot afford at an early stage. This avoids you wasting your time on properties you cannot afford and could also save you money on fees. We can provide you with an AIP usually within an hour depending on your circumstances.

18.   I am over 65, can I get a mortgage

Simply Yes, depending on your retirement income. There are mortgage lenders that will agree a mortgage up to the age of 85 and some will offer a lifetime mortgage. Both these types of mortgages are subject to affordability and the amount of equity/deposit you have in your current or new home.

19.   What does LTV mean?

LTV means Loan to Value. Take the value of the property you are looking to buy or remortgage and compare with the amount of loan you are considering, this gives you a percentage of the property you own and a percentage the bank own. If you add these together they will total 100% which is purchase or valuation of the property.

20.   I have an interest only mortgage, whats my best plan of action

There are various ways to reduce your interest only mortgage and we would suggest getting in touch with us to discuss your options. Not every lender will allow this without a suitable repayment plan or enough equity in the property.