Your Frequently Asked Questions, Answered

Frequently Asked Questions

Here are some of the common questions we get asked:

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Q. How much can I borrow?

There is no right or wrong answer to this question as all Lenders use different methods to calculate how much you can borrow. Some use simple income multiples where as others use complex affordability calculations. Some Lenders will lend more or less subject to your credit rating.

Additionally, lenders may treat basic salary and variable pay such as overtime, bonus and commission differently, which will further affect the amount that they will lend. If you would like a guide as to how much you may be able to borrow please use our Mortgage Cost Calculator.

Call us for a more accurate figure based on your circumstances – ‘Contact Us’

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Q. Who has the cheapest mortgage deal?

This will depend on your individual requirements, personal details and the prevailing ‘deals’. Also, cheapest is not always best as the true cost of the mortgage will depend on fees as well as the interest rate – we have access to the ‘whole market’ and can determine the best deal for you.

Call us for a more accurate figure based on your circumstances – ‘Contact Us’

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Q. Which is best, interest only or a repayment mortgage?

It is not a case of which is better, more that they are different. A repayment mortgage repays both capital and interest monthly and guarantees to repay your mortgage, interest only is normally reliant on a separate investment policy to repay capital and therefore is not guaranteed. The monthly cost of a repayment mortgage is higher than an equivalent interest only mortgage, however you should also allow for any additional costs of a repayment vehicle. There are advantages and disadvantages to both.

See our ‘Mortgage’ section on this site or call us for a more information based on your circumstances – ‘Contact Us’

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Q. I have experienced difficulties with making mortgage or personal credit payments. Can I still get a mortgage?

This will not necessarily prevent you from getting a mortgage unless you are bankrupt. However, the interest rate that you will be charged may be higher than normal and it may cost more to arrange. You will generally need a bigger deposit, usually 10%.

Call us for more information or use our form: ‘Contact Us’

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Q. I have changed jobs and have a probationary period, can I get a mortgage?

Most lenders will insist that you have completed any probationary period, however, there are some that do not have a problem with this. At worst this will only reduce your number of ‘options’ and of course, we can advise you of these. Alternatively you could wait until your probationary period ends.

Call us for more information or use our form: ‘Contact Us’

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Q. What is the maximum period a mortgage can run for?

Although most of us think of 25 years as the normal mortgage term in reality terms from 5 to 40 years are available. The maximum term offered will vary from lender to lender and will be based on your own circumstances. Generally, we would advise that your mortgage should have ended by your chosen retirement age, however, lenders will lend past retirement subject to available income. Special schemes are available for people who are already retired.

Call us for more information or use our form: ‘Contact Us’

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Q. Do I need a deposit?

Generally, the larger the deposit you can put down the better interest rate you will be offered, however, on occasions some lenders do not require a deposit.

Call us for more information or use our form: ‘Contact Us’

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Q. I pay rent of £800 per month and can easily afford a mortgage, why can’t I borrow more?

Lenders use either ‘income multiples’ or an ‘affordability calculation’ according to their lending policy. The amount loaned can also depend on your credit profile. It is sometimes frustrating, but a lender’s opinion of your ability to pay may differ from your own. We have access to the most ‘generous’ Lenders and can easily work out your maximum loan. We can also obtain an ‘agreement in principle’ from the lender so you are absolutely sure when offering to buy a property that you will be able to secure the necessary finance. We will also check that the likely repayments are affordable.

Call us for more information or use our form: ‘Contact Us’

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Q. I want to buy a house with two or more friends, can we all get a mortgage on one property?

Yes you can but not all lenders will take all of your incomes into account. Many will only take the highest two incomes although we do have access to lenders who will take all incomes into account based on up to four people being on the mortgage. All of you must be joint mortgagors (owners). Each person on the mortgage is ‘jointly and severally liable’ and will be responsible for each others payments (i.e. if one person decided not to pay the others would have to meet the mortgage repayments or be at risk of legal proceedings and possible repossession). Your credit rating would also be affected, which would affect your ability to obtain future credit.

Call us for more information or use our form: ‘Contact Us’

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Q. I have heard about self certification mortgages, can I borrow as much as I like?

No, this is not what this type of mortgage was developed for. This type of mortgage is aimed at people who cannot prove all their incomes or need fluctuating income to be counted as if ‘basic’. Applicants are normally self employed or employed with different jobs or other sources of income. The lender will check ‘feasibility’ and may reserve the right to check income if not satisfied with the application. Safeguards on maximum borrowings are in place for your good as well as the lender, if you cannot meet the payments because circumstances change (e.g. interest rates go up) you could lose your home.

Call us for more information or use our form: ‘Contact Us’

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