FREQUENTLY ASKED QUESTIONS
WHAT CLIENTS ASK THE MOST
Here’s everything you ever wanted to know about Mortgages, Protection and Real Estate, but were too afraid to ask. Got a question regarding our services or mortgage options? Check out my most frequently asked questions to find answers to your inquiries. If you can’t find the answers you need, feel free to contact us to get more information.
FAQ
What is a Mortgage?
A mortgage is a loan that enables you purchase property. The loan is typically spread out over a period of 25 years.
What is a lender?
A mortgage lender is an institution that lends money to individuals or businesses for the purpose of financing a property.
What is a Mortgage Broker?
A mortgage broker is a professional who acts as an intermediary between borrowers and lenders.
Who are the FCA?
The FCA stands for the Financial Conduct Authority, which is a regulatory body in the UK that oversees financial markets and financial service providers.
Why use a broker?
Mortgage brokers can help ensure that borrowers get the best possible deal on their mortgage.
Who are the Bank of England?
The Bank of England's main responsibilities are to maintain monetary and financial stability in the UK. Also known as the Governments Banker.
FAQ
How much can we borrow?
Assuming you meet the necessary eligibility requirements, you may be able to borrow up to 5.5 times your household income.
The costs of moving ?
Consider stamp duty, legal fees, estate agency fees (if selling), removals, lender application fees, survey costs and mortgage broker fee.
How much will a Mortgage cost?
The cost of a mortgage can vary depending on several factors such as the type of mortgage, the interest rate, the loan term, and the amount borrowed.
Do I sell first or buy first?
Consider marketing your property for sale, sold subject to contract (SSTC) puts you in a much stronger position when it comes to negotiating on your onward purchase.
How long can I take a Mortgage ?
Six months to Forty years. It's important to understand that the longer the loan term, the more interest you will pay over time.
What documents do I need ?
Proof of ID, proof of residency, proof of income, bank statements.
FAQ
What is Stamp Duty?
A tax paid when purchasing property, current rates are https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
*Current relief available for first time buyers
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What is an ERC?
An early repayment charge is a fee that mortgage lenders may charge if you pay off your mortgage early or make additional payments above the agreed amount.
What do Solicitors do?
They are responsible for ensuring that the transfer of property ownership is completed successfully and legally. Perform searches, draft contracts and distribute funds accordingly.
What is my credit score?
A credit score is a numerical representation of a person's creditworthiness, which is often used by lenders to determine the interest rate and terms of a loan.
How much do Solicitors cost?
Varies according to a variety of factors, its essential to shop around and also ask your friends and family for recommendations, we have access to the best customer rated in the market.
Mortgage with bad credit?
Yes you can, its imperative to use a great mortgage broker who will navigate any issues you have on your Credit report and make a suitable recommendation.
FAQ
Can I get a Mortgage if i'm self-employed?
Absolutely, lenders have adapted criteria over the years to become more flexible to self employed.
What is a Mortgage underwriter?
Asses the client and agrees (underwrites) the mortgage on behalf of the lender.
My Estate Agent wants me to use their Broker?
Very common, some use high pressure tactics, shop around and make sure they are whole of market.
Who pays for the Valuation?
Typically you pay for the valuation, but it is for the lenders benefit.
What is loan to value and why is it a percentage?
Simply your mortgage divided by your property value (x100), expressed as a percentage (%).
Repayment vs Interest Only?
Repayment if you are living at the property or interest only if you are letting.
FAQ
Can I take my Mortgage with me?
Known as ''porting'' essential to speak to a mortgage broker who will discuss your best options.
Can I over pay my mortgage ?
Typically lenders allow you to overpay the Mortgage balance by 10% per year without penalty.
My circumstances have changed?
Essential to speak to a Mortgage Broker who will discuss your best options.
I want to let my property out ?
Known as consent to let (CTL) subject to qualifying criteria most lenders will allow.
Two, Five year fixed or Variable?
Advice will be given and personal recommendation made based on your short to medium term objectives.
What is let to buy ?
Let your current property to move to another, possible but essential to seek independent whole of market advice.
FAQ
Insurance Jargon Buster...
Do I need Buildings Insurance?
Mandatory to have cover as part of your mortgage offer.
Do I need Life Insurance?
We think so, ask yourself what legacy do I want to leave when I am gone.
Do I need Critical illness Cover?
We think so, if you were diagnosed with a critical illness would you like to have your mortgage paid off.
Do I need Protection Insurance?
We think so, ask yourself how would you pay your bills if you were unable to work.
Do I need Contents Insurance?
We think so, ask yourself would you prefer to pay to replace all of your possessions or pay a fraction of that amount as a monthly premium.
