Question 1

How Much can I borrow?

Answer

There is no simply answer to this - How much you can borrow depends firstly on what level of income you receive. Some lenders will lend higher figures against the same level income and they all have different criteria in terms of what income they will accept and how much of it they would be willing to use or how long you need to have been receiving it for. This is a great reason why speaking with an adviser is very useful as their knowledge on lenders affordability criteria will help you to maximise your borrowing needs whilst also ensuring they do so at the best cost to you.

Question 2

Can I get a mortgage with adverse credit?

Answer

A number of lenders will accept varying forms of credit issues. If you have defaults or missed payments or other issues which have affected your credit score it doesn't always mean you can't obtain a mortgage - How long ago, the settlement date or even the type of credit are viewed differently to each lender. It is advised to obtain a copy of your credit report prior to any mortgage application to ensure you know of any issues affecting your credit worthiness. It is important to also confirm if you do have significant adverse credit it is likely the rate of interest you may be offered will be higher as you may be seen as a higher risk.

Question 3

Why should I use a broker instead of going to the bank/ a lender directly?

Answer

A Mortgage brokers responsibility is to get you a mortgage. They are financially rewarded for doing so and as such have a vested interest to ensure they help you as much as possible. A broer will have knowledge of lenders criteria, affordaility calculations, aware of a lenders service levels, timescales, they also know how to complete applications on the lenders systems (reducing errors & delays). Importantly they will source the cheapest product for you based upon your circumstances - this usually extends beyond just the interest rate being offered. Finally they can provide support throughout the entire journey and help to educate clients about the entire process, Hold your hand wherever needed.

Question 4

Can i get a mortgage if I am self-employed?

Answer

The simple answer is yes, Lenders will calculate affordability by making use of a combination of documents, (Tax returns, business bank statments, tax calculations) each lender is different and may look at income differently but most importantly will want to ensure the income is sustainable. When self-employed, lenders are more cautious and applications require extra attention to ensure they progress successfully.

Question 5

Why will one lender give me more money than another lender?

Answer

Each lender has a different attitude towards risk - This means some lenders are willing to lend

Question 6

What Does LTV mean?

Answer

LTV stands for Loan to value, it is a calculation based upon the value of the property against how much you are trying to borrow against it, This is done in a percentage format (%). The higher the percentage is the higher the risk for the lender, this reflects in higher interest rates.

Question 7

What is a Capital repayment mortgage

Answer

A capital repayment mortgage is the most common type or mortgage which operates in the same way as standard loan. With every payment you make you pay the accrued interest and a small portion of the balance. This means at the end of the mortgage term the entire balance will be paid in full.