- What is a mortgage?
- How much can I borrow?
- What is a self-certification mortgage?
- How do I know which is the best mortgage for me?
- What is an 'agreement in principle'?
- What happens at the end of the discounted, capped or fixed rate period?
- Can I get a mortgage if I have a county court judgement against me, if I've been declared bankrupt or if I've been in arrears?
- What are the different kinds of survey?
- Are there charges for paying off your mortgage early?
- What happens if I can't afford to make my monthly mortgage payments?
- What can I do to protect my monthly payments?
A mortgage is a loan taken out from a mortgage lender to pay for a property. The loan is divided into capital, i.e. the amount of money you borrow to purchase the property, and a mortgage interest rate, i.e. the amount the lender charges for lending you the money. |Top|
How much you can borrow will depend on the value of your property, your earnings and what you can comfortably afford to repay each month. It will also depend on the mortgage lender you choose as each has its own guidelines. Some mortgage lenders may only lend you a multiple of three times your income while others may stretch to four or even five times.
If you are buying as a couple the mortgage calculation multiples will be different. Some mortgage lenders will lend you two and a half times both annual incomes while others will offer three to three and a half times the greater income plus one times the second income. |Top|
What is a self-certification mortgage?
A lender will usually need proof of your income, but sometimes, they will rely on your own assessment of income ('self certification').
Self-certified mortgages were designed to cater for people who are self-employed and have difficulty in showing that their earnings are enough to make the payments on the mortgage they are applying for. This could be because they have not been trading for long enough, they have more than one job, or they rely on bonuses for a large part of their total pay. |Top|
Self Cert - The overall cost for comparison is 8.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
How do I know which is the best mortgage for me?
When you speak to your mortgage broker or financial adviser he will discuss your particular financial circumstances and mortgage requirements, e.g. whether you want a repayment mortgage, an interest only mortgage, or a combination of the two; the length of time you would like the mortgage to run etc. Having agreed on what you are looking for, your mortgage adviser will research the market and source the best product to match your needs.
At Authentic Mortgages Ltd we have access to almost every mortgage product on the market, and being a professional broker means that our mortgage advisor will endeavour to provide you with the best mortgage for your needs. |Top|
What is an 'agreement in principle'?
An 'agreement in principle' is a conditional offer of a loan from a lender. Assuming the information you have provided, either via your mortgage broker or direct is correct; they will in principle offer you the loan you have requested. The lender won't make a formal mortgage offer until a valuation has been carried out on the property you wish to buy.
It's a good thing to have an agreement in principle before you start house hunting as it can give you a head start over others looking at the same property. Both estate agents and sellers will view you as a serious buyer. |Top|
What happens at the end of the discounted, capped or fixed rate period?
Your rate will usually revert to the Standard Variable Rate or the lender may offer you another product. |Top|
Can I get a mortgage if I have a county court judgement against me, if I've been declared bankrupt or if I've been in arrears?
Possibly. There are numerous schemes from lenders that cover most circumstances; however each case is treated on merit. |Top|
Adverse Credit - The overall cost for comparison is 9.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
What are the different kinds of survey?
Detailed inspections of properties are designed to help you choose your home. A Homebuyer Survey, carried out by the lender at the same time as the mortgage valuation, highlights any urgent and important matters before you commit to buying the property.
A Building Survey is more detailed and includes technical information on construction and materials, as well as details of any major and minor defects. |Top|
Are there charges for paying off your mortgage early?
Some companies charge for paying off your mortgage early or switch to another lender within a set period, and should make you aware of what you may have to pay. Some lenders offer flexible mortgages that allow early repayment without any charge. |Top|
What happens if I can't afford to make my monthly mortgage payments?
Always call your lender straight away. They will do all they can to help you overcome your difficulties and work with you to find a solution. With your co-operation they can develop a plan for dealing with your financial difficulties and clearing any arrears. |Top|
What can I do to protect my monthly payments?
Subject to eligibility, there are various policies designed to protect you if your income is unexpectedly reduced. Most will meet your monthly mortgage commitments for up to 12 months should you be unable to work due to accident, sickness or unemployment. |Top|