FAQs

A lender (generally a bank, building society or specialist mortgage lender) loans money to someone who wants to own a home. The loan is with interest, and it is secured against the value of the person’s property. The loan agreement is registered against the title of that property. The borrower pays a deposit and the remaining loan sum and/or the interest is paid in monthly installments.

Mortgage brokers help people get mortgages. Consider them to be the middleman between the lender and the borrower. They look for the best possible deal on their client’s behalf and help them with the loan application.

You can get a rough idea using the affordability calculator in the ‘calculators’ section of this support hub. However, it is important to bear in mind that every lender has a different approach to how much you can borrow. The actual amount you’re eligible to borrow is dependent on the cost of the property, the size of your deposit, your credit report, your debts and your affordability. You would need to contact a mortgage broker for bespoke advice based on your needs and circumstances.               

Remortgaging is when you move your mortgage on your existing property from one lender to another. Your new mortgage will then replace your old one. You may want to remortgage if you are coming to the end of your existing fixed term and/or if you are looking for a better deal than your current lender can offer and/or if you want to borrow more money against your property.

Conveyancing is the legal work your lawyer completes when you buy or sell a property. You will need a conveyancer if you want to complete the sale or purchase of a house.

Requirements differ from lender to lender, but as a very generic guide:

If you are employed, you would need pay slips (generally from the last three months, sometimes more) to show your salary and prove you can afford your mortgage repayments. You might also need to provide your P60.

If you are self-employed you need to prove your income via SA302s which can be obtained from HMRC. You might also need to show 3 years’ bank account and 2 years’ trading account statements.

This generally ranges from 20 to 30 years, but really depends on what you want and what you can afford. Sometimes the lender has a condition. Speak to a mortgage advisor to ascertain the terms and conditions that suit your circumstances.

There are hundreds of mortgage deals currently available. To know which one suits you best you need to consider your unique needs, priorities, and long-term plan. Speak to a mortgage advisor as soon as possible so they can guide, they will have the right tools to match you with the best mortgage deals available.

Both these rates can change as per the Bank of England changes in base rate. An SVR is the lenders’ normal mortgage rate without any discounts and deals. It does not follow the bank of England rate exactly. A tracker mortgage is linked to a particular base rate and it moves up and down with it.

If you ever decide to pay off your mortgage before the fixed term ends you will have to pay an early repayment charge. Some mortgage lenders have a portability option to transfer your mortgage to the new property and avoid the early repayment charge altogether.

If you have a residential mortgage you will have to seek permission from your mortgage lender to rent out your property. If you are looking to buy a property to rent out you should get a buy-to-let mortgage.

You must contact your lender as soon as possible and discuss the situation with them in detail. It is always a good idea to have income protection and critical illness cover to protect you against unforeseen financial difficulties.

Generally, this is not a requirement but always a good idea – your mortgage broker can help you decide what insurance/protection you should get with your mortgage.

Usually, you need at least a 10% but there have been instances of lenders accepting a 5% deposit. The larger the deposit, the smaller your monthly repayments and better interest rate.

Contrary to popular belief, a credit score isn’t everything and you can still get a mortgage with a below average score. You can have a low score if you haven’t used much credit in the past, which is not your fault, so as long as you don’t have anything negative on your credit file you should have options available.

It is best to contact a mortgage broker to discuss the options available to you based on your own personal circumstances.

Even if you have bad credit history, as in something negative such as a CCJ or missed payments, you may still be able to secure a mortgage, however it’s worth being aware that your options may be limited and the mortgage deals available could have higher rates and fees and may require a larger deposit.

It is best to contact a mortgage broker to discuss the options available to you based on your own personal circumstances.

Yes, every mortgage broker’s advice is always impartial and also independent. Mortgage brokers work to meet your needs and specific circumstances – they are regulated and work professionally.

A mortgage broker will search as deep as possible and compare the entire market to find the best deal for your given situation. Therefore to get the best mortgage deal available you must get a broker instead of going to lenders directly. The whole point of hiring a broker is so that they do your hard work.

The amount you qualify for depends on your monthly income, your deposit, the price of the property and your debts and monthly expenses. Mortgage lending policies greatly differ among lenders. Generally, you can borrow any where between 3 and 5 times your annual income (or combined annual income for joint applicants). Check out the mortgage affordability calculator under calculators on this site to get a rough idea.

Yes. In the UK you are allowed to take out a joint mortgage with one or more people. Infact, you could get a larger mortgage if you buy a home with other people. You can decide how you want to share the equity in the property and how to divide the responsibility of repayment.

LTV is loan to value ratio. This is the value of the mortgage loan against the price of the property. Say you decide to buy a property at £200,000 and deposit £30,000. Your loan is for £170,000, so LTV is 170,000/200,000 or 85%, the remaining 15% is your equity.

If the money you earn from part time work can afford a mortgage, then that is all that matters. Lenders are more bothered about your total income rather than your hours of work. If you have enough proof of income, your part-time employment status should not be of any concern.

It varies with different lenders, at an average 3 months is enough but some require proof of income for a full year or longer.

Mortgage lending policies greatly differ among lenders. Generally, you can borrow any where between 3 and 5 times your annual income (or combined annual income for joint applicants). Check out the mortgage affordability calculator under calculators on this site to get a rough idea.

If you can prove you can afford them, certain lenders allow you to apply for a second mortgage. If your income allows for two mortgage repayments, you can apply to purchase another home for personal use, a holiday home, weekend residence etc. However, it will be far tougher than your first application because now you will have to prove you can afford both mortgage repayments. Do check with a qualified advisor before taking out a second mortgage.

You can, but you will be putting your home at risk if you are unable to keep up with repayments. You will be consolidating debts so please seek professional advice before securing a loan against your property.

Some lenders have a specialist family buy-to-let mortgage that lets homeowners to let their properties to family members. Provided that the rent can cover the monthly repayments.

At least 6 years. It can also affect your eligibility for a mortgage. However, its effect diminishes as the period between your last payday loan and mortgage application increases.

Mortgage lenders want to ensure you can afford to pay back the mortgage. They will generally do this by reviewing the following:

·        3 months’ (or more) worth of payslips of regular income from work, self-employment or pensions and investments

·        Additional payments, like overtime, bonuses and commission

·        Other income, like state benefits, rental income, trust funds and maintenance payments

·        Bank statements to get an idea of your spending habits and lifestyle costs

This is just a general guide, they may want to see additional documents or ask specific questions based on you individual circumstances.

As long as you can provide sufficient evidence that you will be able to afford the mortgage it should be possible. However, the mortgage term may be shorter depending on your age and the lenders criteria.

Yes, of course. Generally, there are a few more hoops to jump through than a regular salaried worker, however as long as you can demonstrate that you’ll be able to afford the monthly payments it shouldn’t be a problem – if you are self-employed you should speak to a mortgage broker who specialises in helping self-employed people secure a mortgage.

Unlikely. Majority of UK lenders require a 5-10% deposit upfront. However you can look into a guarantor/springboard mortgage, where a family member can guarantee your mortgage against their savings or property.      

You can still get a mortgage if you’ve just switched jobs, it is not a deal breaker. Lenders realise that length of employment does not always correlate to stability – to climb up the ladder, one often needs to switch jobs. So, if you have a good career history and have switched jobs in pursuit of a better opportunity that should be fine. However, there may be some exceptions, for instance, if you’ve had a complete career change or if the new job has a long probationary period, or if you’ve just switched to a temporary contract, etc. 

It would be best to speak with a mortgage adviser if you find yourself in such a situation – getting professional advice will ensure that you don’t unnecessarily ignore a career opportunity just because you are about to apply for a mortgage or that you don’t put your move on hold because you started a new job!

Yes. There are mortgage lenders who would be happy to consider your application if you are on state benefits. If you pass the affordability check, it should be possible however, you might have to shop around to find a lender who will consider you if your sole income is benefit based.