Frequently Asked Questions

This is wholly dependent on the type of mortgage that you are looking for and your status as a buyer. For example, the minimum deposit needed for a residential mortgage is 10%. If you are a First Time Buyer, you do have the option of a 5% deposit. The typical deposit needed for a Buy To Let property is typically 25% of the property’s value. This said, for a BTL property, it can vary between 20-40%.

This answer to this question depends on several variables: how much are you comfortable paying each month? At what point in your life would you like to be mortgage free? The answers to these vary from person to person.

Generally, as a maximum term length, we would stretch your mortgage term to your selected retirement age. Why? In doing this, we could assure that you are able to enter your golden years mortgage free. Some buyers want to pay their mortgage off quicker and do not desire a lengthy mortgage term. Just bear in mind that a shorter mortgage term will equate to higher monthly payments. A longer mortgage term will equate to lower monthly mortgage payments, however you will pay more overall because the debt (and accruing interest) is spread over a greater period of time.

You can take your mortgage term into retirement, but it is highly probable that a lender will require additional proofs from yourself to evidence that the mortgage is still affordable for you. Typically, to evidence your income into retirement, a pension statement/proof of contributions towards a pension will suffice. This varies from lender to lender. All have differing criteria.

Generally speaking, you may be able to borrow 4.5 times your salary. For illustrative purposes then, if you earned £40,000 per year, you may be able to borrow in the region of £170,000 – £180,000. This is a rough estimate at best. Bear in mind that all lenders will take into account 100% of your basic income. If your income is made up of bonuses, allowances and overtime, the percentages of these that a lender will take into consideration do vary.

It’s wise to remember that you are more than just numbers to a lender. How much they will lend you depends on your personal circumstances, income, and outgoings. Your credit score can also have a large impact on a lending decision. We have access to lenders that make their lending decision based on credit searches, however, as opposed to credit scores if yours is not the best.

There are lenders out there that will allow you to borrow 5, 5.5 or even 6 times your salary! To access this, however, is criteria dependant. You may need to earn over a certain amount of money, or work in a specific profession to be eligible.

In the United Kingdom, if you are purchasing your property with a mortgage, an estate agent will typically require three items of evidence from you before a sale can be agreed:

• A form of valid photo ID. Passport/driving license:

This will be required so that your identity can be verified by the selling agent. This is a mandatory requirement.

• Proof of your deposit:

An estate agent’s obligation is to the person selling their house. They will not put forward an offer to their sellers unless you can prove that you have a sufficient deposit in place. Proof of your deposit can come in the form of a bank statement evidencing your deposit sat in an account. If your deposit is being gifted to you, a copy of the gifting person’s bank statement will also suffice. If your deposit is coming from the sale of another property, a memorandum of sale proving an agreed sale will suffice.

• A Decision in Principle:

Sometimes referred to as an Agreement In Principle, a Mortgage In Principle, or even abbreviated to DIP/AIP/MIP. This shows what a lender could be prepared to lend you. This proves to a selling estate agent that you actually have the means to offer what it is you’re wanting to put forward.

When it comes to arranging a viewing on a property, liaising with estate agents, and putting forward offers, this is something that we offer as standard as part of our service. A lot of our customers prefer to have a single point of contact as opposed to taking time out of their lives to liaise with a handful of organisations. If needed, we can also arrange your solicitors for you. We are not tied to a specific solicitor, so we can shop around for one within your desired budget. In short, we can be as involved, or hands-off, as you need us to be.

What happens to your mortgage if you get cancer and you’re unable to work? It doesn’t just vanish. Who is going to inherit your mortgage debt when you die? Your spouse and children, perhaps? Nobody wants to pass their debts on to their loved ones. Again, the debt does not vanish when you die. Protecting yourself, your income, your health and your family is equally as important as securing your dream home. Protection policies make sure the lights stay on, food stays on the table, and the wolf keeps away from the door. Nobody thinks they need it until they need it. Reviewing your position and covering all of your financial shortfalls is vitally important.