1. Compare mortgage rates

We’ll help you compare rates from your various mortgage lenders to see if they can offer a better mortgage rate. There may be remortgaging costs to consider including booking, completion and conveyancing fees, exit fees and early repayment charges. Once you have selected a lender, we will attempt to secure your AIP.

2. 2. Get an Agreement in Principle

An Agreement in Principle / Decision in Principle (AIP or DIP) uses your current circumstances to indicate if a lender is willing to give you a loan and how much you could borrow from a lender. It is not a guarantee that your mortgage application will be accepted. An AIP does not affect your credit score.

3. 3. Apply for your remortgage

You can then begin to apply for a new mortgage with the lender. You will need supporting documentation to confirm the figures provided for your AIP; including 3 months payslips, bank statements, proof of ID and paperwork for your existing mortgage.

Your file will be checked internally by us to ensure we receive sufficient supporting documentation that satisfies the lender’s and our own compliance requirements. Once ‘signed’ off, your file gets passed to a paraplanner who will submit the full mortgage application and supporting evidence to the lender.

4. Remortgage assessment

The lender will then start to assess the application. They will closely review the documents we have uploaded to ensure that the information supplied on the application form matches what the documents say (mainly the salary is correct, and that it is paid into your bank each month and matches the payslip). Once a Property Valuation has been conducted and documents have been assessed and signed off, the lender formally agrees to the mortgage loan progressing the case to a mortgage offer.

5. Sort out the legals

At this point, you will need to appoint a conveyancer or solicitor to manage the transfer of funds, check your new mortgage amount will pay off your existing lender and deal with legal paperwork. The time this takes for a re-mortgage is normally much quicker as the solicitors do not need to wait for any other party and there is no chain causing delays. Once the solicitor confirms they have everything, they will send you documents to sign and return.

The amount you can remortgage is based on:

• Lender criteria
• Income, debts and expenditure
• Loan to Value – equity on the house

As with any mortgage application, you will need a deposit but when remortgaging, this usually is the equity you already have in your property.

Remortgaging usually takes 4 to 8 weeks from application to completion but will depend on your circumstances and remortgage needs. To help speed up the process, make sure you have accurate and relevant documents ready to provide.

A property valuation assesses the value of a property based on location, condition, layout, unique features and other elements. It is conducted by a professional surveyor and you will receive a valuation report which can be used to price a property for the market.

If you are buying or selling a property, the estate agent or lender will conduct a property valuation. During their assessment of your mortgage application, a lender will need to confirm that it is a mortgageable property and it’s worth what the seller (or you if remortgaging) says it is.

Some lenders will order a valuation immediately after a full mortgage application is submitted, others assess the documents first before instructing a valuation. If you are re-mortgaging, the mortgage valuation company will get in touch with you directly to arrange a valuation appointment. If you are purchasing a property, they will contact the Estate Agent/Seller to arrange the appointment.

In some circumstances, lenders may opt to carry out an Automatic (or Desktop) Valuation instead of a physical valuation. They will not need to visit or get in touch with you/the seller. Desktop Valuations normally only happen when the Loan to Value is below a certain limit for remortgage applications. If you are purchasing, the lender will most likely require a physical valuation to be carried out.

The cost of a property valuation depends on the surveyor, it typically costs around £250. Many estate agents offer this service for free. Property valuations by mortgage lenders usually start from £150 but can be higher depending on the property.

A property valuation appointment typically takes 15 minutes to an hour to complete. The surveyor will normally arrange for a one hour appointment so they can talk through property details and price expectations. From start to finish, the property valuation process typically takes around 2 weeks.

For sellers, the next step after a property valuation will be to choose between estate agents that provided a valuation to market the property for sale and act as their solicitors throughout the sale.

For buyers, once the property valuation from a lender has come back, you will progress to a mortgage offer. This means that the mortgage lender has formally agreed the mortgage loan to you.

Occasionally, the property may get ‘down valued’ in a valuation which means the valuer does not think it is worth the value it is currently on the market for or that you say it is if remortgaging. This can be a good bartering tool for property purchases as the valuer should provide supporting comments as to why they do not think the property is worth what it is.

Often, clients take this back to the estate agents to re-negotiate the purchase price, however there is no guarantee that the seller will budge on the agreed price. This is out of our hands and must be discussed directly with the seller.

Whilst a down valuation does not automatically mean you cannot buy the property, the lender may cap how much they lend to you so you will need to increase your deposit. If you don’t, you run the risk of being in negative equity if you sell in the future or the property is repossessed due to missed mortgage repayments.

A down valuation for a re-mortgage can mean that you need to borrow less money (if it still allows you to repay your existing mortgage) or we will need to select a different product from the lender if the Loan to Value (LTV) criteria no longer fits. We will present an alternative product should this happen.

Lenders typically have 3 different decisions: Accept, Refer or Decline.

 

• Accept – lender approves your mortgage in principle subject to required checks, documentation and valuation being satisfactory.
• Refer – lender wants to look at your application in more detail, they might prefer to ‘manually underwrite’ all their cases, or your case may fall just outside of their normal lending policy. This could turn into an accept or decline.
• Decline – lender is not prepared to offer you a mortgage at this time. Patrick James Solutions have the benefit of being Whole of Market, we have access to almost every mortgage lender out there. So, whilst one lender may so say no, we may find another lender more suitable for your current circumstances.

An early repayment charge (ERC) is a fee that is levied by a lender when a borrower repays a loan earlier than the agreed upon repayment date. This charge is often implemented as a penalty for paying off a loan ahead of schedule and is designed to compensate the lender for the lost interest that would have been earned if the loan had been repaid according to the original schedule. ERCs are often applied to mortgages, personal loans, and other types of loans with a fixed interest rate. The amount of the ERC can vary depending on the lender, the type of loan, and the amount being repaid.

Early repayment charges (ERC) typically apply when a borrower repays a loan in full or in part before the end of the agreed loan term. The conditions for an ERC vary depending on the lender and the loan agreement, but some common triggers for an ERC include:

• Prepayment of a fixed-rate loan: If a borrower has a fixed-rate loan, they may be charged an ERC if they choose to repay the loan ahead of schedule. This is because the lender has agreed to lend the money for a specific period of time and has relied on the interest payments from the loan to make a profit.
• Refinancing a loan: If a borrower refinances a loan with another lender, they may be subject to an ERC if they are paying off the original loan ahead of schedule.
• Early repayment of a loan with a penalty clause: Some loan agreements may include a penalty clause that triggers an ERC if the borrower repays the loan ahead of schedule.
• Early repayment of a loan with a variable interest rate: In some cases, early repayment charges may apply to loans with a variable interest rate, but this is less common.

It’s important to note that the terms and conditions for an ERC vary from lender to lender and from loan to loan. It’s always a good idea to carefully read the loan agreement and understand the terms and conditions of the loan before signing, so that you are aware of any potential ERCs that may apply.

Here are some ways to avoid early repayment charges:

• Read the loan agreement carefully: Before signing a loan agreement, make sure you understand the terms and conditions, including any early repayment charges that may apply. If you’re not sure, ask the lender to explain.
• Choose a loan with no early repayment charges: Some lenders may offer loans with no early repayment charges, so it’s worth shopping around to see if you can find one that suits your needs.
• Consider a personal loan: Personal loans often have no early repayment charges, so this may be a good option if you need to borrow a smaller amount of money.
• Wait until the end of the fixed rate period: If you have a fixed-rate loan, consider waiting until the end of the fixed rate period before repaying the loan in full. This way, you won’t be subject to any early repayment charges.

Whether or not to pay an early repayment charge (ERC) is a personal decision that depends on your individual financial situation and goals. Here are some factors to consider when making this decision:

• Cost of the ERC: The first thing to consider is the cost of the ERC. Compare the amount of the ERC to the amount you would save in interest by repaying the loan early. If the cost of the ERC is more than the interest you would save, it may not be worth repaying the loan early.
• Loan term: Consider the length of the remaining loan term. If you have a long time left on your loan, the ERC may be a relatively small percentage of the total loan amount, so it may not be worth repaying the loan early.
• Financial situation: Consider your current financial situation and future plans. If you have the money to repay the loan early and you won’t need it in the future, it may be worth paying the ERC.
• Alternative uses for the money: Think about what else you could do with the money you would save by repaying the loan early. If you could invest the money or use it to pay off other debt, it may be worth paying the ERC.

Ultimately, the decision to pay an ERC or not should be based on a careful analysis of your individual financial situation and goals. You may also want to consider using a financial calculator or speaking to a financial advisor for personalized advice.

The calculation of an early repayment charge (ERC) can vary depending on the lender and the loan agreement. However, some common methods of calculating ERCs include:

1. Fixed percentage of the loan balance: The ERC may be a fixed percentage of the loan balance, for example, 1% or 2% of the total loan amount.
2. Remaining interest: The ERC may be based on the amount of interest that the lender would have earned if the loan had been repaid according to the original schedule. For example, if you have 5 years left on a 10-year loan and you repay the loan after 5 years, the ERC may be based on the interest that would have been earned during the remaining 5 years.
3. Graduated scale: The ERC may be based on a graduated scale, with a higher charge for repaying the loan earlier in the term and a lower charge for repaying the loan later in the term.
4. Tiered rate: The ERC may be based on a tiered rate, with different charges for different stages of the loan term.

To calculate the ERC, you will need to know the specific terms of your loan agreement and the method of calculation used by your lender. If you’re not sure how the ERC is calculated, you can contact your lender for more information.

Whether or not it’s worth paying an early repayment charge (ERC) depends on your individual financial situation and goals. If the cost of the ERC is more than the amount you would save in interest by repaying the loan early, it may not be worth paying the ERC. However, if you have the funds to repay the loan early and won’t need the money in the future, it may be worth paying the ERC. It’s important to consider your current financial situation and future plans, as well as alternative uses for the money, before making a decision about paying an ERC.

Yes, early repayment charges (ERCs) can be added to a new mortgage, and some mortgage loans may include them as part of the loan agreement. However, not all mortgages have ERCs, and some lenders may offer mortgages without them.

An ERC is a fee that is charged by the lender if the borrower repays the mortgage loan early, either in full or in part. The purpose of the ERC is to compensate the lender for the lost interest that would have been earned if the loan had been repaid according to the original schedule.

Whether or not a mortgage includes an ERC can depend on various factors, including the type of mortgage, the lender, and the terms of the loan agreement. If you’re considering a mortgage with an ERC, it’s important to understand the terms and conditions, including the calculation of the ERC, and to compare the cost of the ERC to the potential savings from repaying the loan early.

When shopping for a mortgage, you may want to consider looking for a mortgage with no ERC, or a mortgage that has a low ERC, to give you the flexibility to repay the loan early if needed, without incurring significant fees.

There are several ways to check your credit score in the United Kingdom:

• Credit reference agencies: You can check your credit score for free with credit reference agencies such as Experian, Equifax, and TransUnion. These agencies provide a credit report that gives you an overview of your credit history and credit score.
• Bank or lender: Some banks and lenders in the UK offer free credit score checks to their customers. If you have an account with a bank or lender, you can check to see if they offer this service.
• Comparison websites: Some comparison websites, such as GoCompare and MoneySuperMarket, offer free credit score checks. By entering your personal details, you can receive a free credit report and score.
• Apps: There are also several mobile apps, such as Credit Karma and ClearScore, that offer free credit score checks. Simply download the app and enter your personal details to receive your credit score.

It’s important to keep in mind that not all credit scores are the same, and the score you receive from a credit reference agency may not be the same as the score used by lenders when considering your application for a loan or credit card. However, checking your credit score regularly can give you an idea of your creditworthiness and help you identify any potential errors or discrepancies in your credit report.

Improving your credit score can be done by following these steps:

• Make payments on time: Late payments can have a significant impact on your credit score, so it’s important to make payments on time, every time.
• Keep credit card balances low: High credit card balances can indicate to lenders that you are struggling with debt, which can lower your credit score.
• Don’t close unused credit cards: Keeping old credit cards open can help improve your credit score by increasing the amount of credit available to you.
• Limit credit applications: Applying for too much credit in a short period of time can be seen as a sign of financial stress and can negatively impact your credit score.
• Check your credit report regularly: Checking your credit report regularly can help you identify errors or discrepancies and take steps to correct them.

By following these steps, you can help improve your credit score over time and make it easier to access credit when you need it.

The credit score required for a mortgage in the UK can vary depending on the lender and the type of mortgage. However, in general, a credit score of at least 550 is considered acceptable by many lenders. A score of 600 or higher is generally considered to be a good credit score, and can make it easier to get approved for a mortgage.

Lenders consider many factors when evaluating a mortgage application, including income, employment history, and credit history. A higher credit score can demonstrate to lenders that you have a history of managing your finances responsibly, and can make it easier for you to get approved for a mortgage.

mortgage lenders use the credit scores provided by the three major credit reference agencies: Experian, Equifax, and TransUnion (formerly Callcredit). These credit reference agencies collect and maintain information about an individual’s credit history and use this information to generate a credit score.

Each credit reference agency uses its own proprietary scoring model, so a person’s credit score may differ between agencies. Lenders typically use the credit score provided by one of the credit reference agencies to help assess a borrower’s creditworthiness and determine whether to approve a mortgage application.

It’s important to note that lenders may also use other information, in addition to the credit score, to make a decision about a mortgage application. This information may include employment history, income, and other financial information. Additionally, different lenders may have different lending criteria, so even if your credit score is good, it’s possible that one lender may approve your mortgage application while another may not.

Your credit score can have a significant impact on your mortgage application. A good credit score can make it easier to get approved for a mortgage, and can also help you get a lower interest rate. On the other hand, a low credit score can make it more difficult to get approved for a mortgage, or may result in a higher interest rate.

Lenders use credit scores to assess a borrower’s creditworthiness and to determine the risk associated with lending money. If your credit score is good, lenders may see you as a lower risk and be more likely to approve your mortgage application and offer you a better interest rate.

However, it’s important to note that your credit score is just one factor that lenders consider when evaluating a mortgage application. Other factors, such as employment history, income, and other financial information, can also play a role in the decision. Additionally, different lenders may have different lending criteria, so it’s possible that one lender may approve your mortgage application while another may not.

In general, a credit score of at least 550 is considered acceptable by many lenders, and a score of 600 or higher is generally considered to be a good credit score. However, the specific credit score required for a mortgage can vary depending on the lender and the type of mortgage.

It is possible to get a mortgage with a poor credit score, but it may be more difficult and you may face higher interest rates or less favorable terms. Lenders use credit scores to assess a borrower’s creditworthiness and the risk associated with lending money. If your credit score is low, lenders may see you as a higher risk and may be less likely to approve your mortgage application, or may offer you a higher interest rate. However, working to improve your credit score, such as by making payments on time and reducing credit card balances, can increase your chances of getting approved for a mortgage with more favorable terms.

A mortgage in principle, also known as a decision in principle or a loan pre-approval, is a preliminary assessment of your ability to obtain a mortgage from a lender. This assessment is based on information such as your income, employment history, and credit history.

Getting a mortgage in principle can have a minor impact on your credit score, as the lender may perform a “soft search” of your credit history to assess your creditworthiness. A soft search does not leave a mark on your credit report, and does not impact your credit score.

However, if you apply for several mortgages in principle from different lenders, this can have a negative impact on your credit score. Each time a lender performs a credit check, it leaves a mark on your credit report, and multiple marks in a short period of time can be seen as a sign of financial stress and may lower your credit score.

In general, a mortgage in principle can be a useful tool in the mortgage process, as it can give you an idea of what you can afford and what kind of mortgage you may be eligible for. However, it’s important to be mindful of the potential impact on your credit score and to be strategic about the number of mortgage in principle applications you make.

Stamp duty is a tax paid on property transactions in the UK. It is calculated as a percentage of the purchase price of a property and must be paid to HM Revenue and Customs within 14 days of completion. The rate of stamp duty varies depending on the price of the property and your personal circumstances.

The amount of stamp duty you will need to pay depends on several factors, including the purchase price of the property, your personal circumstances, and the location of the property.

As of 2021, the standard stamp duty rates for residential properties in England and Northern Ireland are as follows:

• Up to £125,000: 0%
• £125,000 to £250,000: 2%
• £250,000 to £925,000: 5%
• £925,000 to £1.5 million: 10%
• Over £1.5 million: 12%

For first-time buyers, the rates are different, with a higher threshold of £300,000 before stamp duty kicks in, and a reduction of up to £5,000 in the amount due.

It’s important to note that these rates are subject to change, and that the specific amount of stamp duty you will need to pay will depend on your individual circumstances. You can use an online stamp duty calculator to estimate the amount you will need to pay.

https://www.stampdutycalculator.org.uk/

The threshold for stamp duty refers to the purchase price of the property at which the stamp duty rate changes. In the United Kingdom, there are different stamp duty thresholds for different personal circumstances, such as whether you are a first-time buyer or not.

As of 2021, the standard stamp duty thresholds for residential properties in England and Northern Ireland are as follows:

For non-first-time buyers:

• 0% up to £125,000
• 2% for the portion of the property price between £125,000 and £250,000
• 5% for the portion of the property price between £250,000 and £925,000
• 10% for the portion of the property price between £925,000 and £1.5 million
• 12% for the portion of the property price over £1.5 million

 

For first-time buyers:

• 0% up to £300,000
• 5% for the portion of the property price between £300,000 and £500,000
• 10% for the portion of the property price over £500,000

The stamp duty rates for second homes and investment properties in England and Northern Ireland are higher than those for primary residences. The standard stamp duty rates for second homes are as follows:

• Up to £125,000: 3%
• £125,000 to £250,000: 5%
• £250,000 to £925,000: 8%
• £925,000 to £1.5 million: 13%
• Over £1.5 million: 15%

For example, if you were purchasing a second home for £275,000, the stamp duty owed would be calculated as follows:

• Up to £125,000: 3% (3 x £125,000 = £3,750)
• £125,000 to £250,000: 5% (5 x £125,000 = £6,250)
• £250,000 to £275,000: 8% (8 x £25,000 = £2,000)
• The total stamp duty owed would be £12,000 (£3,750 + £6,250 + £2,000).

Whether you need to pay stamp duty depends on a number of factors, including the location of the property, the purchase price of the property, and your personal circumstances.

In England and Northern Ireland, you generally need to pay stamp duty if you are purchasing a property for more than £125,000 (or £300,000 for first-time buyers). However, there are certain circumstances in which stamp duty may not be owed, such as if you are purchasing a property for less than £125,000, or if you are a first-time buyer purchasing a property for less than £300,000.

It’s important to check the most up-to-date information and use an online stamp duty calculator or consult with a financial professional to determine if you need to pay stamp duty, and if so, how much.

Yes, you generally need to pay stamp duty on a new build property in England and Northern Ireland, just like you would with any other property purchase.

Yes, in England and Northern Ireland, you generally need to pay stamp duty on the purchase of land. The amount of stamp duty owed depends on the purchase price of the land, as well as your personal circumstances.

For example, if you are purchasing a piece of land for £250,000, you would need to pay stamp duty based on the standard stamp duty rates in England and Northern Ireland, which are as follows:

• Up to £125,000: 0%
• £125,000 to £250,000: 2%
• £250,000 to £925,000: 5%
• £925,000 to £1.5 million: 10%
• Over £1.5 million: 12%

It’s important to check the most up-to-date information and use an online stamp duty calculator or consult with a financial professional to determine the exact amount of stamp duty that you would need to pay on a piece of land.

In England and Northern Ireland, you typically need to pay stamp duty within 30 days of completing the purchase of a property or piece of land.

The process of paying stamp duty usually involves the following steps:

Obtain a quote: You can use an online stamp duty calculator or consult with a financial professional to determine the amount of stamp duty owed based on the purchase price and your personal circumstances.

Complete a return: You will need to complete and submit a stamp duty return form to HM Revenue and Customs (HMRC) within 30 days of completing the purchase.

Make a payment: Once you have submitted the return form, you will need to make payment of the stamp duty owed to HMRC.

It’s important to keep in mind that the process and time frame for paying stamp duty may vary depending on the circumstances of the purchase, so it’s always best to consult with a financial professional for more information and guidance.

Yes, in some cases, it is possible to add the cost of stamp duty to your mortgage when purchasing a property. This is known as borrowing the stamp duty, and it can be a way to finance the cost of the stamp duty without having to pay it upfront.

When you borrow the stamp duty, the amount is added to your mortgage loan and then repaid along with your mortgage over the term of the loan. This can be a convenient way to finance the cost of the stamp duty if you don’t have the funds available to pay it upfront, but it’s important to keep in mind that by adding the cost of stamp duty to your mortgage, you will be paying interest on that amount over the term of the loan.

It’s important to consider the cost of borrowing the stamp duty, as well as the overall cost of your mortgage, when making a decision on whether to borrow the stamp duty or pay it upfront. It is recommended to consult with a financial professional for more information and guidance on the best option for your circumstances.

Yes, in some cases, it is possible to borrow money to pay for the stamp duty when purchasing a property. This can be a way to finance the cost of the stamp duty without having to pay it upfront.

One way to borrow to pay the stamp duty is to add the cost of the stamp duty to your mortgage loan. This means that the amount of the stamp duty is included in the total loan amount, and you repay it along with the mortgage over the term of the loan. This can be a convenient way to finance the cost of the stamp duty if you don’t have the funds available to pay it upfront.

Another option is to take out a separate loan to cover the cost of the stamp duty. This loan can be in the form of a personal loan, or a short-term loan specifically designed to pay for the stamp duty.

It’s important to consider the cost of borrowing the stamp duty, as well as the overall cost of your mortgage and other loans, when making a decision on whether to borrow to pay the stamp duty or pay it upfront. It is recommended to consult with a financial professional for more information and guidance on the best option for your circumstances.

No, in the UK, stamp duty must be paid in full at the time of completing the property purchase. It is not possible to pay stamp duty in installments.

The stamp duty is a one-time tax that is paid to the government when you purchase a property, and it is typically paid as part of the conveyancing process when the property is transferred from the seller to the buyer.

It’s important to factor in the cost of stamp duty when budgeting for a property purchase, as it can be a significant expense, especially if you’re purchasing a more expensive property. If you don’t have the funds available to pay the stamp duty upfront, you may consider borrowing to pay the stamp duty, either by adding the cost to your mortgage or by taking out a separate loan.

It is recommended to consult with a financial professional for more information and guidance on the best options for your circumstances.

No, you do not have to pay stamp duty when you sell a house. In the UK, stamp duty is a tax that is paid by the buyer when purchasing a property, not by the seller.

However, if you are the seller of a property, there may be other taxes or fees that you are responsible for paying, such as capital gains tax or estate agents’ fees. It’s important to understand the tax implications of selling a property, and to consult with a financial professional or tax advisor if you have questions or concerns.

No, stamp duty is not tax deductible in the UK. Stamp duty is a one-time tax that is paid by the buyer when purchasing a property, and it is not considered to be a tax-deductible expense.

While stamp duty cannot be claimed as a tax deduction, there may be other tax implications associated with purchasing a property, such as capital gains tax or inheritance tax. It’s important to understand the tax implications of owning a property, and to consult with a financial professional or tax advisor if you have questions or concerns.

It is not possible to claim back stamp duty in the UK once it has been paid. Stamp duty is a one-time tax that is paid by the buyer when purchasing a property, and it is considered to be a final payment that cannot be refunded.

However, there are certain circumstances under which you may be eligible for relief from stamp duty, such as if you are a first-time buyer or if you are purchasing a property to replace your main residence. In these cases, you may be eligible for a reduced rate of stamp duty or a complete exemption from the tax.

If you believe you are eligible for relief from stamp duty, it’s important to speak to a financial professional or a tax advisor to understand your options and to ensure that you receive the relief to which you are entitled.

The effective date of stamp duty changes in the UK can vary depending on the specific change being made. In general, stamp duty changes are announced as part of the budget and take effect on a specific date, which is usually the first day of the new tax year (6 April). However, in some cases, changes to stamp duty can take effect immediately, or they may be implemented at a later date.

It’s important to check the specific details of each change to stamp duty to understand when it will come into effect and how it will impact you. You can find information on the latest stamp duty changes on the government’s official website, or you can consult with a financial professional or a tax advisor to get up-to-date information on the current rules and rates.

The stamp duty cut that was introduced in the UK in July 2020 started on 8 July 2020 and was in effect until 31 March 2021. This temporary reduction of stamp duty reduced the threshold at which stamp duty becomes payable from £125,000 to £500,000. This change was introduced as a measure to support the housing market and boost the economy during the COVID-19 pandemic.

After 31 March 2021, the stamp duty threshold returned to £125,000. However, it’s important to note that the stamp duty rules and rates can change, so it’s always a good idea to check the latest information and to consult with a financial professional or a tax advisor to understand the current rules and rates.

The temporary stamp duty cut that was introduced in the UK in July 2020 and was in effect until 31 March 2021 has not been reversed. After 31 March 2021, the stamp duty threshold returned to £125,000.

However, it’s important to note that the stamp duty rules and rates can change, and it’s always a good idea to check the latest information and to consult with a financial professional or a tax advisor to understand the current rules and rates. Additionally, changes to stamp duty can be announced as part of the budget or through other government announcements, so it’s important to stay informed about the latest developments in this area.

Whether you should pay an arrangement fee for your mortgage product depends on your individual circumstances and financial goals. Here are a few things to consider when making your decision:

1. Cost savings: An arrangement fee can sometimes result in lower interest rates, which could mean significant cost savings over the life of your mortgage.
2. Upfront costs: An arrangement fee is an upfront cost that you’ll need to pay when you take out your mortgage, so you’ll need to factor this into your budget.
3. Flexibility: Some mortgage products with arrangement fees offer more flexible terms and conditions, such as the ability to make overpayments or take payment holidays, which may be important to you.
4. Alternatives: Consider alternative mortgage products that don’t have arrangement fees to see if they might be a better fit for you.

Ultimately, the decision of whether or not to pay an arrangement fee for your mortgage product will depend on your individual circumstances and financial goals. It’s important to do your research and compare different mortgage products to determine which one is right for you. It may also be a good idea to speak to a financial advisor or mortgage broker who can help you understand the pros and cons of different mortgage products and the costs involved.

There are several different types of mortgage valuation, including:

1. Basic valuation: A basic valuation is the most basic form of mortgage valuation and is usually carried out by the lender as a standard part of their mortgage application process. It’s typically a brief, desktop assessment that helps the lender establish the value of the property and determine if it meets their lending criteria.
2. Homebuyer report: A homebuyer report is a more detailed assessment of the condition of a property that’s carried out by a qualified surveyor. It covers the structure, fabric, and services of the property and provides the buyer with a comprehensive report that highlights any defects or issues that may need to be addressed.
3. Full building survey: A full building survey is the most comprehensive form of mortgage valuation and provides the buyer with an in-depth assessment of the condition of a property. It covers everything from the roof to the foundations and provides a detailed report on any repairs that may be needed.
4. Drive-by valuation: A drive-by valuation is a quick and basic assessment of a property that’s carried out by a qualified surveyor without the need for an internal inspection. It’s typically used when the lender is unable to obtain a basic valuation.
5. Desktop valuation: A desktop valuation is a type of mortgage valuation that’s conducted by the lender using information that’s publicly available, such as data from the Land Registry or online property databases. This type of valuation is typically quicker and less expensive than other types of mortgage valuation.

The type of mortgage valuation you choose will depend on your individual circumstances, the type of property you’re purchasing, and your budget. It’s important to understand the different types of mortgage valuation and what each involves so you can make an informed decision about which one is right for you.

 

Whether or not you can obtain additional borrowing without incurring a penalty depends on the terms of your existing mortgage. Some mortgage products may allow you to borrow more without penalty, while others may have early repayment charges for any additional borrowing. It’s best to check the terms of your mortgage agreement or speak to your lender directly to understand your options and the potential consequences of any additional borrowing.

Having arrears on your mortgage in the last 6 years could make it more difficult to get a mortgage, but it doesn’t necessarily mean that you won’t be able to get one. It will depend on several factors, such as the amount of arrears, how long you had arrears, and what steps you took to address the situation.

Lenders typically take a cautious approach to lending to individuals who have had mortgage arrears in the past, as they consider them to be higher risk borrowers. However, if you have since taken steps to improve your financial situation and have a good credit history, you may still be able to get a mortgage.

If you’re considering applying for a mortgage and have had arrears in the past, it may be a good idea to speak to a financial advisor or mortgage broker who can help you understand your options and the likelihood of being approved for a mortgage. They can also help you understand what you can do to improve your chances of being approved for a mortgage, such as paying down debt, improving your credit score, or saving more for a down payment.

Yes, your first purchase can be a buy-to-let property in the UK. However, like any real estate investment, it is important to carefully consider the pros and cons before making a decision.

1. Finances: Buying a buy-to-let property in the UK requires a significant investment of money, including the purchase price, legal fees, stamp duty, and any necessary renovations. You should ensure you have enough funds to cover these costs and to support the property if it is vacant for any length of time.
2. Location: The location of the property is crucial in determining its rental potential. Look for properties in areas with high demand for rental properties, such as near colleges, universities or transportation hubs.
3. Market conditions: It’s important to research the local housing market to determine if rental demand and property values are stable or rising. You should also be aware of any economic or political changes that may affect the market.
4. Tax implications: Owning a buy-to-let property in the UK has tax implications, including the requirement to pay income tax on the rental income. You should consult a tax advisor to understand your obligations.
5. Management responsibilities: As a landlord, you will be responsible for finding and screening tenants, collecting rent, maintaining the property, and handling any repairs or legal issues.

It’s recommended to do thorough research and consider the long-term implications before making a buy-to-let investment. Consult a financial advisor or real estate professional for further guidance.

It depends on the terms of your building and contents insurance policy. Some policies may provide coverage for personal belongings, including mobile phones, while others may not.

It is important to carefully review the terms and conditions of your policy to determine what is covered and what is not. Some policies may have limits on the amount of coverage provided for personal belongings, while others may exclude coverage for specific items, such as mobile phones.

If your policy does not provide coverage for your mobile phone, you may consider purchasing a separate insurance policy, such as personal property insurance, which specifically covers personal belongings.

It’s a good idea to review and update your insurance coverage regularly to ensure that it meets your changing needs and provides adequate protection. If you have any questions about the coverage provided by your policy, you should contact your insurance provider for clarification.

The timing of your first mortgage payment after remortgaging to a new lender will depend on the terms of your new mortgage agreement and the date on which your new mortgage begins.

Typically, the first payment on a remortgage is due one month after the start date of the mortgage. The start date is usually the completion date, which is the day that the transfer of ownership from the old lender to the new lender is completed.

It is important to carefully review the terms and conditions of your new mortgage agreement to determine when your first payment is due. You should also receive a schedule of payments from your new lender, which will provide details on the amount and due date of each payment.

If you have any questions about the timing of your first payment, you should contact your new lender for clarification. They will be able to provide you with the most up-to-date information and guidance on when and how to make your first payment.

There are several reasons why you may want to raise capital against your current property in the UK:

1. Debt Consolidation: If you have multiple outstanding debts, you can use the funds from a property capital raise to pay off these debts and simplify your finances.
2. Home Improvements: If you want to make improvements to your property, such as a renovation or an extension, a capital raise can provide you with the necessary funds.
3. Business Opportunities: If you want to start or grow a business, raising capital against your property can provide you with the necessary funds to do so.
4. Investing in another property: If you want to purchase another property, you can use the funds from a property capital raise to do so.
5. Unexpected Expenses: If you have unexpected expenses, such as medical bills or home repairs, a property capital raise can provide you with the necessary funds to cover these expenses.

It’s important to note that raising capital against your property involves taking out a second mortgage or a secured loan, which puts your property at risk if you’re unable to repay the loan. Before pursuing a capital raise, it’s important to carefully consider your financial situation and consult with a financial advisor.

The timing of when you will receive the cashback from your mortgage deal in the UK depends on the terms of your mortgage agreement. Cashback is a form of incentive offered by some mortgage lenders to attract borrowers, and the terms and conditions vary between lenders.

Typically, cashback is paid out either upon completion of the mortgage or after a certain period of time, such as after the first year of the mortgage term. However, some mortgage deals may include restrictions on when and how you can use the cashback.

It’s important to check the terms and conditions of your mortgage agreement to understand when and how you will receive the cashback. If you’re unsure, you can contact your mortgage lender for clarification.

A County Court Judgment (CCJ) can impact your credit score, which in turn can affect your ability to get a mortgage. Lenders typically use your credit score to assess your creditworthiness and ability to repay a loan. A CCJ on your record may indicate to lenders that you have a history of not paying debts, which could make them less likely to approve your mortgage application.

However, not all lenders will automatically reject your application if you have a CCJ. Some may still consider your application if the CCJ was resolved and paid within the past 12 months, and if you have a good overall credit history.

If you have a CCJ, it’s best to be upfront about it when applying for a mortgage and to provide as much information as possible about the circumstances surrounding the debt. You may also want to consider working with a mortgage broker who can help you find a lender that is more likely to accept your application.

It’s also a good idea to check your credit report to make sure all the information on it is accurate and up-to-date, and to take steps to improve your credit score if necessary. This could include paying off any outstanding debts, ensuring all your bills are paid on time, and limiting new credit applications.

The length of time you have to wait before obtaining a mortgage after becoming self-employed can vary depending on the lender. Some lenders may require you to have been self-employed for a minimum of one year before they will consider your mortgage application, while others may accept applications from newly self-employed individuals.

As a self-employed worker in the Construction Industry Scheme (CIS), you may face additional challenges in obtaining a mortgage because of the nature of your income. Lenders often want to see a stable and consistent income, and self-employment can sometimes be seen as a higher risk.

However, this does not mean that you will be automatically rejected by all lenders. Some lenders may still consider your mortgage application if you can provide evidence of a steady income, such as invoices and tax returns. It may also be helpful to provide a letter from your accountant or other financial advisor to support your application.

If you have been self-employed for less than a year, it may be worth waiting until you have a longer track record of steady income before applying for a mortgage. In the meantime, you can take steps to improve your financial standing, such as maintaining good credit and reducing debt.

It’s also a good idea to work with a mortgage broker who can help you find a lender that is more likely to accept your application based on your specific circumstances.

A low credit score can make it more difficult to obtain a mortgage, but it’s not impossible. Some lenders may still consider your mortgage application if you have a low credit score, especially if you have a stable income and a good deposit.

However, you may face higher interest rates and stricter loan terms if you are approved for a mortgage with a low credit score. This can make it more expensive to repay the loan and could negatively impact your financial situation.

If you have a low credit score, it’s important to take steps to improve it before applying for a mortgage. This can include paying off any outstanding debts, ensuring all your bills are paid on time, and limiting new credit applications. It’s also a good idea to check your credit report to make sure all the information on it is accurate and up-to-date.

If you have difficulty obtaining a mortgage due to your credit score, you may want to consider alternative options, such as a secured loan, or working with a specialist lender who specializes in helping people with poor credit.

It’s also important to keep in mind that applying for multiple mortgages can further lower your credit score, so it’s best to work with a mortgage broker who can help you find a lender that is more likely to accept your application based on your specific circumstances.

A high credit score is typically an indicator of good creditworthiness and a strong likelihood of being able to repay a loan, but it is not the only factor that lenders consider when evaluating a mortgage application. There could be several reasons why you have been declined for a mortgage despite having an excellent credit score, including:

1. Income: Lenders want to see that you have a stable and sufficient income to repay the mortgage. If your income is too low, lenders may be concerned that you will not be able to make the monthly payments.
2. Debt-to-income ratio: Lenders want to see that you have enough disposable income to cover the mortgage payments and other living expenses. If you have a high amount of debt, this can impact your debt-to-income ratio, making it more difficult to get a mortgage.
3. Employment history: Lenders want to see that you have a stable employment history. If you have recently changed jobs or have a history of frequent job changes, this can impact your mortgage application.
4. Deposit: Lenders want to see that you have a good deposit, typically around 20% of the property value. If you have a small deposit or no deposit, this can make it more difficult to get a mortgage.
5. Property type: Lenders may have restrictions on the type of property they are willing to lend against. For example, they may not lend against certain types of new builds or properties that require significant repairs.
6. Loan-to-value ratio: Lenders want to see that the loan amount is within a reasonable percentage of the property value. If the loan amount is too high relative to the property value, this can impact your mortgage application.

If you have been declined for a mortgage, the lender should provide you with a reason for the decline. You can also request a copy of your credit report to see if there is any incorrect information that could be affecting your application. If you need further help, you may want to consider working with a mortgage broker who can help you understand why your application was declined and guide you through the process of finding a more suitable mortgage.

A credit check and a credit score are related but distinct aspects of your credit history and financial standing.

A credit check, also known as a credit inquiry, is when a lender or creditor reviews your credit history to assess your creditworthiness. A credit check can be performed for a variety of reasons, including when you apply for a loan, credit card, or mortgage, or when you sign up for a utility service. Each time a credit check is performed, it will appear on your credit report, and multiple credit checks in a short period of time can have a negative impact on your credit score.

A credit score, on the other hand, is a numerical representation of your credit history and creditworthiness. It’s based on information in your credit report and provides a snapshot of your credit history, including your payment history, credit utilization, and credit history length. A credit score can range from 300 to 850, with a higher score indicating a lower credit risk.

In summary, a credit check is a review of your credit history, while a credit score is a numerical representation of your creditworthiness. While a credit check is a one-time event, your credit score is constantly updated based on your credit behavior and is a key factor in determining your eligibility for loans and credit products.

Life insurance is not typically a requirement to get a mortgage, but it can be a good idea to have it in place. Life insurance can provide financial protection for your family in the event of your death, helping to ensure that your mortgage and other debts are paid off and your family is not left with a burden of debt.

If you have a co-borrower or a joint mortgage, the lender may require both borrowers to have life insurance in place. In some cases, the lender may offer life insurance as part of the mortgage package, but it’s important to compare the cost and coverage with other life insurance options before making a decision.

Keep in mind that life insurance is not a requirement to get a mortgage, but it can provide peace of mind and financial protection for your family if you were to pass away. You may want to consider discussing your life insurance options with a financial advisor to determine what is best for your specific circumstances.

Income protection is a type of insurance that provides a monthly income if you are unable to work due to illness or injury. While having income protection may not directly improve your chances of getting a mortgage, it can provide financial security and stability, which can be attractive to lenders.

Lenders want to see that you have a stable income and are able to make the mortgage payments. If you have income protection in place, it can provide peace of mind for you and the lender that your mortgage payments will continue to be made, even if you are unable to work. This can help to make your mortgage application more attractive to lenders and increase your chances of getting approved.

That being said, having income protection is not a guarantee that you will be approved for a mortgage, as lenders still consider a variety of other factors, including your credit score, debt-to-income ratio, employment history, and deposit.

If you are considering getting a mortgage, it’s important to consider all of your options and to work with a mortgage specialist who can help you understand the factors that impact your eligibility and guide you through the mortgage application process.

The duration of a decision in principle (also known as a mortgage in principle or agreement in principle) depends on the lender, but it typically lasts anywhere from three to six months.

A decision in principle is a preliminary assessment of your eligibility for a mortgage and is based on information such as your income, expenses, and credit history. It’s not a full mortgage application, but it does give you an idea of the amount you may be able to borrow and the types of mortgage products that may be available to you.

If you decide to move forward with a full mortgage application, the lender will perform a more comprehensive review of your financial situation and may request additional information or documentation.

Keep in mind that even if you have a decision in principle, it’s not a guarantee that you will be approved for a mortgage, as the lender will still need to perform a full review of your financial situation and take into account any changes that may have occurred since you received the decision in principle.

Yes, if you are getting a joint mortgage in the UK, both of you will need to be listed on the property deeds. The property deeds are legal documents that show who owns the property and who has an interest in it. When you take out a joint mortgage, both borrowers are equally responsible for repaying the mortgage and for ensuring that the mortgage payments are made.

Having both names on the property deeds means that both of you have an equal ownership interest in the property and are equally responsible for the mortgage debt. If one borrower were to pass away or if you were to separate, both of your names would still be on the property deeds and both of you would still be responsible for the mortgage debt, unless you agree to transfer ownership or to refinance the mortgage in a different way.

It’s important to consider the long-term implications of taking out a joint mortgage and to carefully evaluate your financial situation and your ability to repay the mortgage before making a decision. You may want to discuss your options with a financial advisor or a mortgage specialist to determine what is best for your specific circumstances.

There are several acceptable forms of deposit when applying for a mortgage:

1. Cash savings: This is the most traditional form of deposit, where you use your own savings to contribute to the down payment on the property.
2. Gift from family member: Some lenders accept gifts from family members as a form of deposit, as long as the money is a genuine gift and not a loan.
3. Help to Buy equity loan: This is a government-backed scheme that provides first-time buyers in the UK with a loan of up to 20% of the property’s value (40% in London) to use as a deposit.
4. Lifetime ISA: This is a type of individual savings account (ISA) that allows you to save up to £4,000 per year tax-free, with the government adding a 25% bonus on top of your savings. The money in the Lifetime ISA can be used for a deposit on a first home.
5. Rental income: If you own another property that generates rental income, some lenders may accept this income as a form of deposit.
6. Sale of assets: You can use the proceeds from the sale of assets, such as shares, a second property, or a car, as a form of deposit.

It’s important to note that not all lenders accept all forms of deposit, and the terms and conditions can vary depending on the lender and the type of mortgage you are applying for. It’s best to check with your lender to see what forms of deposit they accept and to work with a mortgage specialist who can help you understand the requirements and ensure that you are able to provide the necessary documentation.

Some lenders do accept gifts from family members as a form of deposit for a mortgage, but the exact requirements and conditions can vary from lender to lender.

Typically, lenders require the following when accepting a gift from a family member:

1. Proof of relationship: You will need to provide proof of your relationship with the person giving the gift, such as a birth certificate or family tree.
2. Proof of funds: The lender will want to see proof that the funds being gifted are genuinely a gift and not a loan that needs to be repaid. This can be in the form of a letter from the person giving the gift, confirming that the funds are a gift and do not need to be repaid.
3. Evidence of source of funds: The lender may also want to see evidence of where the funds came from, such as bank statements or payslips.
4. Consistency with your overall financial profile: The gift must be consistent with your overall financial profile and should not appear out of proportion with your other sources of income or assets.

It’s best to check with your lender to see if they accept gifts from family members as a form of deposit and

In general, using a personal loan as a deposit for a mortgage in the UK is not an acceptable form of deposit. Most lenders require that the deposit come from your own savings or from a gift from a family member, and they typically do not accept personal loans as a form of deposit.

Using a personal loan as a deposit may not be viewed favorably by lenders because it raises questions about your ability to save and manage your finances, and it may also increase your overall debt levels, making it more difficult for you to repay the mortgage.

If you’re having difficulty saving for a deposit, there are other options you can consider, such as the Help to Buy equity loan, a Lifetime ISA, or a shared ownership scheme. It’s always a good idea to discuss your options with a financial advisor or a mortgage specialist to determine what is best for your specific circumstances.

The acceptance of cryptocurrency as a form of deposit for a mortgage in the UK can vary from lender to lender. Some lenders may be open to it, while others may not be as familiar with the concept or may not accept it at all.

In order to use cryptocurrency as a deposit, you would typically need to show proof of the source of the funds, how the cryptocurrency was acquired, and that you have a history of successful trading. You may also need to convert the cryptocurrency into a more conventional currency, such as pounds sterling, in order to use it as a deposit.

It’s always best to check with your lender to see if they accept cryptocurrency as a form of deposit and to discuss your specific circumstances with a financial advisor or mortgage specialist who can help you understand the requirements and ensure that you are able to provide the necessary documentation.

It is unlikely that a lender in the UK would accept a deposit that was obtained through gambling as a form of collateral for a mortgage. Most lenders prefer to see a stable source of income and a history of saving and managing finances responsibly, and they may view a deposit obtained through gambling as risky and unpredictable.

Additionally, using money obtained through gambling as a deposit may raise questions about your overall financial stability and ability to repay the mortgage, which could negatively impact your chances of obtaining a mortgage.

If you’re looking to buy a home and need a deposit, it’s best to consider using savings or a gift from a family member, or to look into other options such as a Help to Buy equity loan or a shared ownership scheme. You may also want to speak with a financial advisor or mortgage specialist to explore your options and determine what is best for your specific circumstances.

When assessing whether someone is financially dependent in the UK, lenders typically consider a range of factors, including income, expenses, and financial obligations. Whether or not your children who don’t live with you are considered financially dependent will depend on their specific circumstances and the criteria used by the lender.

If you are providing regular financial support to your children in the form of maintenance payments, this may be taken into account by the lender as evidence of your financial obligations. However, the lender will also consider other factors, such as your income, expenses, and credit history, as well as any other financial commitments you may have.

It’s worth noting that different lenders may have different criteria when assessing financial dependence, so it’s always best to check with your specific lender to understand how they will evaluate your application.

Yes, it is possible to raise capital on your existing mortgage to consolidate debt. This is known as a “remortgage” or “further advance” and involves increasing the amount you owe on your mortgage, releasing some of the equity in your home in the process.

The amount you can borrow will depend on various factors, such as the current value of your property, your outstanding mortgage balance, and your credit history. The lender will also take into account your current financial situation and your ability to repay the loan.

It’s important to note that taking on additional debt by remortgaging your home may increase your overall borrowing costs and result in you paying more interest over the lifetime of the mortgage. It’s essential to carefully consider whether this is the right option for you and to seek advice from a professional financial advisor or mortgage broker before making a decision.

Yes, it is possible to raise capital on your existing mortgage in the UK to pay a tax bill. However, it’s important to carefully consider whether this is the right option for you and seek advice from a professional financial advisor or mortgage broker.

Yes, it is possible to raise capital on your existing mortgage in the UK for business purposes. However, it’s important to carefully consider whether this is the right option for you and to seek advice from a professional financial advisor or mortgage broker before making a decision.

Yes, it is possible to raise capital on your existing mortgage in the UK for buying another property. This is known as a “further advance” or “remortgage” and involves increasing the amount you owe on your mortgage, releasing some of the equity in your home in the process.

Yes, it is possible to raise capital on your existing mortgage in the UK as part of a divorce settlement. This may involve buying out your ex-partner’s share of the property, which can be achieved through a “remortgage” or “further advance.” However, it’s important to seek legal and financial advice before making any decisions.

Yes, it is possible to raise capital on your existing mortgage in the UK to repay a debt management plan. However, it’s important to carefully consider whether this is the right option for you and to seek advice from a professional financial advisor or mortgage broker before making a decision.

Decreasing life insurance is a type of policy where the benefit amount decreases over time, usually to align with the outstanding balance of a repayment mortgage. Level life insurance is a type of policy where the benefit amount remains the same throughout the term of the policy.

If you are tied into a fixed rate mortgage and need to move before the end of the fixed rate period, you may be charged an early repayment fee. However, it may be possible to negotiate with your lender to reduce or waive the fee, or to transfer your mortgage to your new property.

Yes, if you are a member of the UK armed forces and are currently posted overseas, you can still receive mortgage advice in the UK. There are a range of online and remote mortgage advice services available that can help you to navigate the process of obtaining a mortgage while you are abroad.

The Forces Help to Buy scheme is available to regular armed forces personnel in the UK who have completed at least two years of service. If you are planning to leave the military in the next two years and have not yet completed two years of service, you would not be eligible for the scheme.

However, if you have completed at least two years of service and are currently in the process of leaving the military, you may still be able to access the Forces Help to Buy scheme, provided you meet the other eligibility criteria. It’s worth noting that the scheme is due to end in December 2022, so you should check the latest guidance from the Ministry of Defence to ensure you are up-to-date with any changes.

The Forces Help to Buy scheme is due to end on 31 December 2022. This means that eligible armed forces personnel in the UK have until this date to apply for the scheme and must complete their property purchase by 30 September 2023.

Yes, the Forces Help to Buy scheme involves the government taking a second charge on the property being purchased. This means that when you sell the property, you will need to pay back any outstanding loan under the scheme, as well as the outstanding balance on your main mortgage. The amount of the loan will be a percentage of the property price, up to a maximum of £25,000, and is interest-free. It’s important to consider the implications of the second charge on your property before applying for the scheme, as it could affect your ability to access other types of lending in the future.

If you are eligible for the Forces Help to Buy scheme, you can borrow up to 50% of your annual salary, up to a maximum of £25,000. The loan is interest-free and repayable over a period of up to 10 years, but you will need to meet certain eligibility criteria to qualify.

To apply for the Forces Help to Buy scheme in the UK, you will need to complete an online application form on the Joint Personnel Administration (JPA) system. You will also need to provide details of the property you are planning to purchase and complete a financial assessment to demonstrate that you can afford the loan repayments.

Not all mortgage lenders in the UK accept the Forces Help to Buy scheme as a form of deposit. It’s important to check with individual lenders to see if they are willing to accept the loan as part of your deposit before applying for a mortgage. Some lenders may have specific criteria or requirements for accepting the loan as part of your deposit.

No, if you are using the Forces Help to Buy scheme to purchase your first home in the UK, you must live in the property as your main residence. You cannot rent out the property or use it for any other purpose while you are still serving in the armed forces, unless you obtain permission from your chain of command.

Yes, you can still use the Forces Help to Buy scheme in the UK even if you are not a first-time buyer. However, the scheme is only available to armed forces personnel who are still serving and have completed at least two years of service. You must also meet other eligibility criteria, including affordability checks and creditworthiness assessments.

In the UK, the definition of a first-time buyer typically refers to someone who has never owned a property before, or who has not owned a property in the last three years. If you have not owned a property in the last three years, you may be considered a first-time buyer by some mortgage lenders and may be eligible for certain first-time buyer products and incentives.

Yes, some UK lenders may take into account the profitability of your limited company when assessing your affordability for a mortgage. However, this will depend on the specific lender and their underwriting criteria. They may also want to see evidence of your income and affordability, including your personal income and any dividends paid out by your company.

Yes, guarantor mortgages still exist in the UK. A guarantor mortgage is a type of mortgage where a family member or friend guarantees the mortgage payments in case the borrower is unable to make the payments. However, not all mortgage lenders in the UK offer guarantor mortgages, and those that do may have specific criteria or requirements.

The UK Government Help to Buy equity loan must be repaid either after 25 years or when you sell your property, whichever comes first. You can also choose to repay the loan earlier if you wish, but you must repay a minimum of 10% of the property’s current value at the time of repayment.

If you have an interest-only mortgage and the term is coming to an end, you may need to repay the outstanding balance. Your options may include switching to a repayment mortgage, extending the term of your mortgage, or selling your property to repay the debt. You should speak to your mortgage lender or a financial advisor to explore your options.

It may be possible to get a mortgage in the UK if you are in a debt management plan, but it will depend on the specific lender and their underwriting criteria. Having a debt management plan may affect your credit score and affordability, and you may need to provide additional documentation to support your application. It’s best to speak to a mortgage advisor to explore your options.

It may be possible to use all three of your jobs to obtain a mortgage in the UK, but it will depend on the specific lender and their underwriting criteria. They may consider the stability and consistency of your income from each job and may require additional documentation, such as payslips or tax returns. It’s best to speak to a mortgage advisor to explore your options.

It may be possible for a parent to join you on a mortgage application in the UK as a co-borrower or guarantor. This will depend on the specific lender’s criteria, your parent’s financial circumstances, and their willingness to take on this financial responsibility. It’s best to speak to a mortgage advisor to explore your options.

The maximum loan-to-value (LTV) you can obtain when remortgaging to release capital in the UK will depend on the specific lender and their criteria. Generally, you can expect to borrow up to 75-85% LTV, but this may be subject to affordability checks, credit checks, and other factors. It’s best to speak to a mortgage advisor to explore your options.

The minimum deposit required to purchase a property in the UK will depend on the specific lender and their criteria. Generally, you can expect to need a deposit of at least 5-10% of the property’s value. However, some lenders may require a larger deposit, and larger deposits may result in more favorable interest rates. It’s best to speak to a mortgage advisor to explore your options.

Yes, if you plan to rent out your existing property and buy a new property to live in, you will need to switch your current mortgage from a residential mortgage to a buy-to-let mortgage to comply with lender requirements and regulations. It’s best to speak to a mortgage advisor to explore your options.

Yes, many lenders will take your statutory maternity pay into account as part of their affordability assessment, as long as it’s a regular and predictable income stream. It’s best to speak to a mortgage advisor to explore your options and find a lender that will consider your circumstances.

Using betting sites won’t necessarily stop you from getting a mortgage, but some lenders may view this as a potential risk factor in terms of your financial stability and ability to make regular mortgage payments. It’s important to maintain a good credit score and provide evidence of a stable income when applying for a mortgage.

It is unlikely that using rude or comical references when transferring money would directly impact your ability to obtain a mortgage in the UK. However, if the transactions are flagged by the lender or underwriter during the affordability assessment, it could lead to further scrutiny of your financial history and potentially affect your overall application. It is generally recommended to keep financial transactions professional and avoid using inappropriate references.

The length of time a mortgage offer lasts can vary depending on the lender and the type of mortgage. Typically, mortgage offers are valid for between three and six months. Some lenders may offer longer periods, while others may offer shorter. It is important to check the specific terms of your mortgage offer to ensure you do not miss the deadline for completion.

A portable mortgage is a mortgage that can be transferred from one property to another. If you have a portable mortgage, you can take it with you when you move to a new property, which can be useful if you’re not sure how long you’ll be staying in your current home. However, there are some conditions and fees involved, and you’ll need to check with your lender to see if your mortgage is portable and what the specific requirements and limitations are.

Yes, a lender may take your pension income into account when assessing your affordability for a mortgage, subject to their lending criteria. They may also consider any other sources of regular income, such as salary, rental income, or investments.

If you are in the military and have a non-contributory pension, you may still be able to provide evidence of this to lenders. You could provide documents such as your pension forecast statement, your annual pension summary or your most recent payslip which shows your pension contributions. Alternatively, you could seek advice from a mortgage broker who may be able to assist you in finding a lender who can consider your pension as part of your affordability.

It may be possible to obtain a mortgage if you have used payday loans in the past 6 years, but it may make it more challenging. Payday loans can indicate financial instability and may be seen as a risk by lenders. It’s best to speak with a mortgage advisor who can assess your situation and recommend the best course of action.

Taking a payment holiday during the pandemic may affect your ability to get a mortgage in the UK, as it could be seen as a sign of financial difficulty. However, it will depend on your overall financial situation and the lender’s criteria. It’s best to discuss your individual circumstances with a mortgage advisor.

Yes, your rental income can be used towards the affordability assessment for a new mortgage in the UK. The amount of rental income that can be considered will depend on several factors, including the lender’s criteria and your personal financial circumstances. It’s best to speak to a mortgage advisor for a more accurate assessment.

Getting an agreement in principle (AIP) will usually result in a “soft” credit check, which will not have a significant impact on your credit score in the UK. However, a “hard” credit check that follows the AIP may impact your score. It’s best to limit the number of hard credit checks you have within a short period to avoid any negative impact.

You may choose to use a secured loan instead of a remortgage to release capital in the UK if you have a low mortgage interest rate that you do not want to lose or if you have early repayment charges on your current mortgage. A secured loan may also be quicker to obtain and may have lower upfront fees than a remortgage. However, secured loans may have higher interest rates and shorter repayment terms than a remortgage, so it’s important to compare the options carefully.

The maximum mortgage term in the UK varies by lender and can range from 25 to 40 years, although some may offer longer terms for specific types of borrowing, such as buy-to-let mortgages. The length of the mortgage term can affect the size of your monthly payments and the overall cost of your loan. It’s important to consider the total cost of the mortgage, including interest, fees, and any other charges over the life of the loan.

The minimum mortgage term in the UK is typically around 5 years, although some lenders may offer shorter terms for specific types of borrowing. However, it’s important to note that shorter mortgage terms may result in higher monthly payments, as the loan amount will need to be repaid over a shorter period. It’s important to consider your personal circumstances and financial goals when deciding on the length of your mortgage term.

Universal Credit may be considered as part of your affordability assessment for a mortgage application in the UK, but it will depend on the lender’s criteria and your personal financial circumstances. Some lenders may not accept Universal Credit as a source of income, while others may consider it if it’s a regular and sustainable source of income. It’s best to speak to a mortgage advisor for advice on your specific circumstances.

tes

Having high levels of unsecured debt can impact your ability to get a mortgage in the UK, as lenders will assess your affordability and debt-to-income ratio when considering your application. If your debt is too high, you may not be able to afford the mortgage repayments, which could affect your eligibility. It’s best to speak to a mortgage advisor to assess your individual situation and explore potential options.

t

It is possible to get a mortgage in the UK if you’re on a zero hours contract, but it can be more challenging as lenders prefer borrowers with regular and consistent income. You will need to demonstrate a history of regular work and a sustainable level of income to be considered for a mortgage. It’s best to speak to a mortgage advisor who can advise you on the options available to you.

As a nurse, your pay may vary from week to week, but it should not necessarily stop you from getting a mortgage in the UK. Lenders will assess your overall financial circumstances, including your employment history and income, to determine whether you can afford the mortgage repayments. It may be helpful to provide evidence of your income over a longer period of time, such as the past 6 months or a year, to demonstrate your income stability. It’s best to speak to a mortgage advisor who can assess your individual situation and provide guidance on your options.

It may be more difficult to get a mortgage in the UK if you’re on a temporary contract, as lenders prefer borrowers with regular and stable income. However, it’s not impossible, and lenders will assess your affordability based on your current income and other factors such as credit history and savings. It’s best to speak to a mortgage advisor who can assess your individual situation and provide guidance on your options.

The amount you can borrow on a mortgage in the UK will depend on various factors, including your income, credit score, employment status, and monthly expenses. Generally, lenders may offer a loan of up to 4-5 times your annual income, but this can vary depending on the lender and your individual circumstances. It’s important to speak to a mortgage advisor who can assess your financial situation and provide guidance on the amount you may be able to borrow.

To increase your chances of getting a mortgage in the UK, it’s important not to do the following:

1. Overcommit yourself financially
2. Miss or make late payments on any credit agreements
3. Apply for credit excessively
4. Make large, unexplained cash deposits into your bank account
5. Hide any financial issues or misrepresent your income or employment status

It’s best to be honest and upfront with lenders and seek advice from a mortgage advisor who can guide you through the process.

The amount you can borrow for a mortgage in the UK will depend on various factors, but as a general rule of thumb, lenders may offer a loan of up to 4-5 times your annual income. However, this can vary depending on the lender and your individual circumstances, such as your credit score, employment status, and monthly expenses. It’s important to speak to a mortgage advisor who can assess your financial situation and provide guidance on the amount you may be able to borrow.

To apply for a mortgage in the UK, you typically need to provide several months’ worth of payslips, usually three to six months, depending on the lender’s requirements. You may also need to provide additional documentation, such as bank statements and proof of identification. It’s best to speak to a mortgage advisor who can advise you on the specific documentation you’ll need to provide based on your individual circumstances and the lender’s requirements.

When preparing for a mortgage appointment in the UK, you should have the following information available:

1. Details of your income, including payslips and employment contract
2. Bank statements for the past 3-6 months
3. Details of your outgoings, including any debts or credit card balances
4. Proof of identity, such as a passport or driving license
5. Your National Insurance number
6. Information on the property you wish to purchase, including its value and location
7. Any relevant paperwork, such as proof of deposit, benefits, or child support

It’s best to speak to a mortgage advisor who can advise you on any additional information you may need based on your individual circumstances and the lender’s requirements.

Having bad credit can make it more challenging to get a mortgage in the UK, as lenders typically prefer borrowers with good credit history. However, it’s not impossible, and there are specialist lenders who may consider your application. You may need to provide additional documentation and pay a higher interest rate. It’s best to speak to a mortgage advisor who can assess your individual situation and provide guidance on your options.

In the UK, some mortgage advisors and brokers may charge a fee for their services, while others may offer them for free. It’s important to check with the specific advisor or broker beforehand to understand their fees and charges. Some lenders may also charge an application or arrangement fee for the mortgage itself, which can vary depending on the lender and the type of mortgage product.

There are several reasons why someone else may have a better interest rate than you on a mortgage in the UK. Some possible factors include:

1. Their credit score and financial history are better than yours
2. They have a larger deposit or equity in their property
3. They are applying for a different type of mortgage product or deal
4. They have a lower debt-to-income ratio
5. They have a longer employment history

It’s important to remember that mortgage interest rates can vary depending on individual circumstances and market conditions. It’s best to speak to a mortgage advisor who can provide guidance on how to improve your eligibility for better rates.

There can be several reasons why a mortgage application may be declined in the UK, including:

1. Poor credit history or credit score
2. Insufficient income or employment stability
3. High levels of existing debt or financial commitments
4. The property not meeting the lender’s criteria
5. The applicant not meeting the lender’s eligibility criteria
6. The lender may have tightened their lending criteria due to market conditions or regulatory requirements.

It’s best to speak to the lender or mortgage advisor to understand the specific reasons for the decline and explore any other options that may be available.

If you are financially linked to someone in the UK who has a bad credit history, it could potentially impact your own creditworthiness. However, there are a few things you can do:

1. Disassociate yourself from the person by closing any joint accounts or removing your name from any shared credit agreements.
2. Check your own credit report to ensure that it accurately reflects your financial history and that there are no errors or fraudulent activities.
3. Consider building up your own credit history and credit score through responsible borrowing and repayment.
4. Speak to a mortgage advisor who can advise you on your options and help you find a lender who may be willing to consider your application despite your financial link to the person with bad credit.

In the UK, mortgage lenders typically accept various types of income, including:

1. Salary and wages
2. Bonuses and commission
3. Self-employment income
4. Rental income
5. Investment income
6. Pension income
7. Benefits income (such as child benefit or tax credits)

It’s important to note that the amount of income that is considered by the lender may vary depending on the specific source of income and the lender’s criteria. It’s best to speak to a mortgage advisor who can provide guidance on what income sources are acceptable and how they can be used to support a mortgage application.

If the property you are wishing to purchase in the UK has been down-valued, there are a few things you can do:

1. Negotiate with the seller to reduce the price of the property to match the valuation.
2. Consider paying the difference in cash if you have the funds available.
3. Get a second opinion by instructing a new valuation or surveyor to ensure that the initial valuation was accurate.
4. Speak to your mortgage advisor to explore your options and see if the lender is willing to reconsider the valuation or offer a different mortgage product that may be more suitable for the new valuation.

Yes, in the UK, it is possible to take out a mortgage with a term that ends after you have retired. However, some lenders may have stricter age limits and may require you to demonstrate how you will continue to make mortgage payments after retirement. It’s important to speak to a mortgage advisor who can help you find a lender who will consider your application based on your individual circumstances and financial situation.

If you have been declined for a mortgage in the UK, it’s a good idea to wait at least three months before reapplying. This will give you time to take steps to improve your credit score, reduce your debts, or address any other issues that may have contributed to the initial rejection. Reapplying too soon could result in additional rejections, which can further harm your credit score. During this time, it’s a good idea to work with a mortgage advisor who can help you identify the issues and advise on what steps you can take to increase your chances of approval in the future.

Congratulations on having your offer accepted! To move forward with the mortgage process in the UK, you should do the following:

1. Contact your mortgage lender to inform them that your offer has been accepted.
2. Provide any additional information or documentation that the lender may require.
3. Instruct a solicitor or conveyancer to handle the legal process of buying the property.
4. Arrange for a property survey to be carried out.
5. Finalize your mortgage application and provide any necessary information to the lender.
6. Review and sign the mortgage offer.
7. Exchange contracts with the seller and pay the deposit.
8. Complete the purchase by paying the remaining balance on the agreed completion date.

No, you should not cancel your direct debit with your current lender until your mortgage with them has been fully paid off and your account with them has been closed. This is because your current lender will continue to receive payments from your direct debit until the mortgage has been fully paid or until you inform them to cancel the direct debit.

Instead of cancelling the direct debit, you should inform your current lender that you are remortgaging to a new lender and provide them with the details of your new mortgage agreement. They will then be able to arrange for the direct debit to be cancelled once the mortgage has been fully paid and the account has been closed.

If you have any questions about the process of remortgaging and cancelling your direct debit, you should contact your current lender for clarification. They will be able to provide you with the most up-to-date information and guidance on how to proceed.

Fee Free means Fee Free…

Nothing hidden in the small print… it is what it is… for all those in the NHS, Police or Fire Service and of course to those who have ever served in HM Armed Forces.

Fee Free means Fee Free…

It astounds us how often when dealing with a military client we have the following conversation…

Usually on completion…

“the good bit”

When they get the keys…

How much do we owe you????

Even when we advertise the brand “Fee Free Military Mortgage Advice”

I guess they are just so used to hidden costs and small print….

Can’t really blame them…

There is a few hurdles and documents we have to provide that back up this “fee free” offering.

Rightly so… you see, we do charge everyone else…

Actually, not exactly right…

With exception of Serving Police, Firefighters & NHS…

BUT… for everyone else we charge a fee of at least £395…

so it is a genuine discount, and its documented in all the literature…

you see… our terms of business has to say in black and white…

we can charge a fee of up to £750

But…

This is waived for “insert flavour of hero”

One other thing we get asked a lot is how then do you make your money?

Each lender pays what’s called a procuration fee, usually 0.4% of the loan amount.

So… £90,000 mortgage would see us rewarded £360

A common follow up myth….

None of this is added to your mortgage balance, its not charged to you by us or hidden in the fees of a lender.

We get paid the procuration fee even if you are being charged an advice fee…

Lenders now all pay almost identical percentages which put a stop to any potential lender bias…

One last thing,

For the military, we go one step further…

If you have ever served in the military,

Be it… RAF, Army, Navy

We promise to waive our fee forever,

So to be clear,

Veterans get access to Fee Free Military Mortgage Advice too!!

And so you bloody should!

You didn’t…

 

I’ve said it…

 

You…

Did…

Not…

 

Do you know why?

Even the deal which we find you probably isn’t going to be there this time next week, and to get documents together ready for an application will take at least a week even for the most organised.

Now… to be clear….

 

There are instances, mainly when you are an existing customer of our where you could walk in, have an appointment and that very same day we could secure a rate for you that is available that very same day… this happens on a daily basis…

 

But…

 

For the majority of people, these decisions can take time…

And…

 

For the record…

 

As a whole of market independent mortgage adviser we will be offering you the best rate and product available for you at the time…

 

There may be a better rate with HSBC,

 

Or even Halifax… or “bank of Baz” if you listen to our podcasts you will get this one…

 

But… guess what, they wouldn’t accept your application, for a number of reasons…

 

That could be…

 

Age

Income

Affordability

Debt to income ration

Property type

Employment type

The colour of your eyes…

It all matters…

 

We are not in this game for fun… we are not in this game to rip you off…

Saving you money and getting you the best deal is all that matters…

At the same time, sometimes the “better” rate has a fee… some fees are as high as 3%…

Its only worth paying a fee if we tell you it’s worth it…

Trust us…

 

We know what we are doing..

If there was a better rate elsewhere we literally have to document, even if there was 15 better rates we have to list every single lender that had a better rate and explain why…

 

Sometimes though…

 

Especially now…

It’s not about the rate its about you budget.

We work with you on that…

Really digging deep into your expenditure and finding out what’s realistic and affordable

We then collect the necessary documents…

 

You know why?

Because we can’t submit it and secure that rate without them…

We wont cut corners

We wont bend the rules…

Its in your best interest to get the documents back to us as soon as you can…

 

So…

 

Next time you are at a bus stop and there’s a pretty advert there offering a 4.99% interest rate…

 

Remember these 3 things.

 

• It takes 48 hours to get that advert approved and that’s why we never advertise rates…

 

 

• Unless that advert was printed today and you jump on the bus straight to that particular bank, get a same day appointment and take with you your bank statements, payslips, p60 and passport its unlikely the bank can guarantee that rate wont have changed.

 

• We couldn’t offer you a worse rate than you could get if we tried… the industry s highly regulated, absolutely insanely document heavy and ad far as an audit trail goes these records have to be kept for 50+ years in some instances.

 

 

Now you know….

 

Please just trust your broker…

Know that rates change daily…

 

It’s a sad, horrific depressing time for us at the moment, we do not like giving bad news…

 

But please…