Welcome to our FAQ section! Whether you’re a first-time visitor or a valued customer, we’re here to help you find the answers you’re looking for. From our services and policies to general enquiries, we’ve compiled a list of the most common questions to make your experience with us as smooth as possible.
If you have any other questions or would like to discuss the above in more detail based on your current circumstances, do get in contact with us, we’d love to help.
What is the minimum deposit required for a mortgage?
In most cases you’ll need at least a 5% deposit, meaning you can borrow up to 95% of the property’s value. There are certain circumstances where you may need a larger deposit. To find out what deposit you will need please contact us for more detail.
What are the different types of mortgages?
The most common type of mortgage products includes fixed-rate (interest stays the same), variable-rate (interest fluctuates), tracker (linked to the Bank of England base rate), and interest-only (you only pay interest, repaying the capital later).
What are the government schemes for a first-time buyer?
Schemes like First Homes and Shared Ownership can help. Some lenders also offer low-deposit mortgages backed by government support.
What is an agreement in principle?
This can also be referred to as a decision in principle or mortgage in principle. It’s a statement from a lender indicating how much they might be willing to lend, based on basic financial checks. It helps when making offers on properties.
What is stamp duty and do I have to pay it?
Stamp Duty Land Tax (SDLT) is a tax on property purchases above a certain threshold. The amount of stamp duty land tax that is payable on the purchase varies dependent on the purchase price and buyer status. Please follow the link to the Government website for more information. This is subject to regular changes, with sometimes no notice so please refer to the up to date link and always check this with your Solicitor.
How long does the process take?
On average, 8-12 weeks, but it can be quicker or longer depending on circumstances. Getting prepared before applying for a mortgage can help speed up the process, contact us to find out more.
Do I need a Solicitor / Conveyancer?
Yes, depending on the type of transaction. Conveyancers handle the legal side of your property purchase or re-mortgage. When you have your initial chat with us we can clarify if you need to instruct a solicitor.
Can I get a mortgage with bad credit?
It’s possible, but options may be limited, and interest rates higher. Some specialist lenders cater to those with poor credit. Contact us to find out what options are available to you based on your current circumstances.
What is an early repayment charge?
Some mortgages have penalties if you pay off your mortgage early or overpay beyond the allowed limit during a fixed term. When we review your mortgage, we can check to see if you are subject to this type of charge.
What is a mortgage term?
The length of time you agree to repay your mortgage, typically 25-40 years. As part of our advice, we will recommend a mortgage term that fits your preferences and needs.
Should I use a mortgage advisor?
A mortgage adviser can help you navigate the mortgage market, answering any questions and provide support before, throughout and after your application. An adviser will get to know your current circumstances and future plans and be able to recommend the best solution for you. Whole of market advisers have access to a wider range of lenders to meet your needs.
What does loan to value (LTV) mean?
LTV is the percentage of the property’s value that you borrow. For example, if you placed a 10% deposit when purchasing a property this would mean you have a 90% loan. A lower loan to value (higher deposit) generally means better mortgage rates.
What are the costs involved?
Costs may include deposit, mortgage fees, solicitor fees, surveys, moving costs, and potentially stamp duty.
What will a mortgage lender want to know?
Lenders assess income, employment status, credit history, existing debts, and your deposit to determine affordability.
What is the difference between a repayment and interest-only mortgage?
A repayment mortgage reduces both interest and loan balance over time, while an interest-only mortgage requires you to only make monthly payments that pay the interest owed you will need to repay the full loan amount at the end of the term.