Mortgage FAQ’s
We’re here to help with your residential mortgage queries
We’ve put together a selection of some of the questions we get asked most often by our clients. If your questions is not answered by our mortgage FAQ’s below, pop us a message on the contact us page and we’ll be happy to answer any query you have..
Normally, mortgage lenders will require you to have a minimum of 5% of the purchase price or value of the property. This means that if the property value is £200,000 lenders will require you to have a deposit of at least £10,000. There are a few exceptions to this, contact us for more information.
The term ‘affordability’ is used by lenders to determine how much they will lend to people. Several factors are used to calculate this, including income, expenditure, credit score, and other ongoing financial commitments. Each lender has their own way of assessing affordability.
Often referred to as an AIP or Decision in Principle DIP, this is where a lender issues a non-binding certificate following an assessment of affordability and a credit search. An AIP isn’t based on a particular property but is a basic assessment of suitability for a mortgage at a certain point in time. It’s a good indication of the likelihood of a mortgage offer being granted once a property has been found. We can obtain an AIP for you to assist in your mortgage search.
Yes, you can! Most lenders will require 2 years proof of income for self-employed people however, there are some lenders who will accept 1 years proof of income.
You need to start by knowing how much you can afford to borrow. A mortgage broker with access to the whole marketplace of lenders is best placed to do this for you. Most mortgages in the UK are arranged through mortgage brokers. Make sure you have all the necessary documents to hand. We’ve put together a handy guide on the mortgage process, click here to get your copy.
A Buy to Let mortgage is a mortgage on a property that is owned, or being purchased, for the purpose of being rented out, either as a long-term rental or as short-term rental, such as a holiday let.
Proof of your income – for employees this is payslips and P60. For self-employed it is Tax Calculations and Tax Year Overviews from your HMRC account. For Limited Company Directors it is Tax Calculations, Tax Year Overviews, and/or company accounts or accountant’s reference.
Yes, they can! Be that with a contribution towards a deposit or jointly going on the mortgage to boost the overall income and affordability. The market has come up with several innovations to help ‘family support’ type mortgages.
Although our office is based in Diss, we give mortgage advice all over the UK. To give you an idea of the areas that we give face to face advice, Tom lives just outside Great Yarmouth, so anywhere along the east coast, from Cromer to Southwold, including places like Lowestoft, is his home patch. Paul lives between Norwich and Diss, so South Norfolk is his home patch. This includes Wymondham, Attleborough, and Harleston. We also base ourselves at Benechos estate agents in Beccles on at least 2 days a week.
Rather than pay off your mortgage as you go along, with an interest only mortgage you will only be paying the interest each month. This can work out to be a cheaper monthly payment but means that at the end of the term you will still owe the original amount you borrowed and will therefore need to pay off the mortgage with a lump sum or switch to a repayment mortgage.
When you reach the end of your current mortgage term, your existing lender may offer you a new product to stay with them. If you choose to stay with your lender but switch to the new product, this is known as a product transfer. We can arrange product transfers with most lenders, and we will always compare these with deals on the rest of the marketplace to ensure you are aware of your options.
For further information, select the type of mortgage you need:
There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be up to £450.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Mortgage Response is a trading name of The Mortgage Shop (UK) Ltd which is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
The Mortgage Shop (UK) Ltd Financial Conduct Authority register number: 951591
Registered Office: 6 Wellington Place, Belfast. BT1 6GE
Registered Company Number: NI26842 Registered in Northern Ireland
Mortgage Response registered office: 23 Beach Road, Caister-On-Sea, Great Yarmouth, England NR30 5ER