See below the answers to the most common mortgage questions.
How does a Mortgage work?
A Bank or Lender loans money with interest. In return their loan is secured against the value of a person’s property. The details of the loan agreement are registered against the Title of that property- this is known as a mortgage.
What is a mortgage broker?
Mortgage brokers are specialist mortgage providers who will look for a suitable mortgage product on a client’s behalf in order to ensure they get the best possible deal. Fees and success rates vary from one broker to the next, so it is sensible to use the services of a number of brokers to get the most attractive quote.
What different types of mortgages are there?
There are two main types of mortgages;
Fixed Rate Mortgage and Variable Rate Mortgage. A Fixed Rate Mortgage means that your interest amount is fixed for a period of time (usually two to five years) therefore your repayments don’t change.
A variable rate mortgage means the amount of interest you pay can change, and therefore so do your repayments. See our page on mortgage interest rates for more information or view the various types of mortgages we offer.
I have bad credit, will this be a problem?
This will not prevent you from getting a mortgage. Our advisors have great success in helping clients with adverse credit. There are a number of lenders that we work closely with who are more favourable to clients who have previously had trouble sourcing finance. Talk to one of our advisors today for further information.
Is the mortgage advice independent?
Yes, our advice is always independent and impartial, our advisors don’t work on commission, this means they will recommend what they consider to be the best mortgage to meet your needs. They have no affiliation with a particular lender or panel. Our advisors are CeMap qualified, FCA regulated and offer professional advice.
How do I know i’m being offered the best mortgage available to me?
Being a ‘whole of market broker’ means that we have access to the whole mortgage market. Our advisors search and compare the entire market to find the best offer for you, doing all the hard work for you. Please note however a small amount of lenders do use the source of a broker.
What fees are involved in getting a mortgage?
Our brokers take all the hard work out of finding the very best mortgage offers available. Our brokers are CeMap qualified and FCA Regulated. We can charge an Application Fee and a Financial Arrangement Fee payable on completion. Any fees will be detailed on the documentation provided prior to any commitment by the client.
How much can I afford?
There is no prescribed criteria to determine what you can borrow. The amount you qualify for will be determined by the purchase price of the property, the deposit you are able to put down, your income and monthly expenses. Refer to our mortgage calculator for a guide, alternatively our brokers are able to give you an indication over the phone or a full agreement in principal.
How does the process work?
See our mortgage process information for a detailed description on what you can expect from our office and how your application will be handled through to completion.
I would like to invest in a rental property is this something you can help with?
Yes, our brokers have a wealth of experience in a range of Mortgage types including in the increasingly popular buy to let Mortgage. See our Buy to Let page for more information.
What is LTV?
Lenders often talk about the LTV requirement. LTV is an acronym for Loan to Value Ratio. This is a term used to describe the ratio of a loan to the value of the property purchased. For eg if you borrow £170,000 to purchase a property valued at £200,000 the LTV is 170,000/200,000 or 85%, the remaining 15% is your equity.