Martin Bright could not have done anything better, he listened to my needs, acted upon them promptly to get me the best and the right deal.
Martin was a tremendous help with mortgage and life insurance advice. His knowledge and expert advice was a real guiding light throughout the complexities of navigating both these areas for the very first time. We wouldn’t hesitate to recommend him. He is personable, conscientious and everything you could hope for in an advisor.
We’re Not Just Your Ordinary Mortgage Broker in Ipswich…
We love providing whole of market mortgage advice in Ipswich and believe that any interaction with us will be a positive experience because we do our best to help you achieve all your mortgage goals!
First Time Buyers
We love helping you get on to the property ladder. We’ll oversee your first purchase from start to finish!
Looking to jump-start your investments with a buy-to-let mortgage? We will find you the best deal.
We’ll review your options with your existing lender and compare them against the market for you.
Whether you’re an experienced mover, or a first-time buyer, take advantage of the 95% mortgage guarantee scheme today!
Help to Buy
Need Help to Buy advice? Our straightforward team of Help to Buy experts will put you in the picture.
Are you self-employed and looking for an excellent mortgage deal? Our simple process will explain it all to you, and give you peace of mind.
Mortgage Broker in Ipswich – Our Tailored Approach
The difference between Fees Free Mortgages and the ‘big boys’ is an independent service tailored to your actual situation. Click a button below to complete our onboarding questionnaire. These initial questions give us a good overview and the end result will be a call to introduce ourselves, finish off the ‘fact find’ and then your mortgage broker in Ipswich will personally research your best options.
Why Choose us as Your Fees Free Mortgage Broker in Ipswich?
We’ll find the best mortgage deal that suits you and give you expert financial advice while taking care of your whole mortgage application. Best of all, we’re FEES FREE! Putting the Free in Fees Free Mortgages.
We’re a fees free mortgage broker in Ipswich – Many firms charge upfront fees, or fees on completion.
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Your Fees Free Mortgage Broker Ipswich won’t be paid a commission based on the size of your loan, or the choice of lender. So their only motivation is to get you the most suitable mortgage deal, from our mortgage brokers in Ipswich.
1. Initial Discussion
Our friendly fact find process will allow us to understand your goals and objectives. It’s also vital to understand any hurdles to remortgages at this stage. We’ll explain exactly who we are and what you can expect from our service.
2. Review the market on your behalf
Your mortgage broker in Ipswich will get straight to work. We explore the maze of mortgage lending criteria for you. We’ll make affordability and credit assessments ensuring the recommendations we make are suitable to your individual needs.
3. Share our recommendations with you
We’ll illustrate the facts and figures in an easy to understand presentation, including the justifications behind the recommendations.
4. Package & submit a full mortgage application
Our mortgage submission route is much easier than as ‘in branch’ experience. Why sit through a 2 hour interview with the bank when your mortgage broker in Ipswich can do this for you!
5. Oversee the process to completion
If solicitors are introduced, don’t worry. We’ll assist you with their paperwork and we can talk to them on your behalf. Your mortgage broker in Ipswich will act as the middle man right through to completion.
To get a mortgage when you are self-employed, in addition to the typical mortgage requirements (such as good credit score, financial history, and a deposit, etc), you will have to provide additional documentation to evidence your income, such as certified accounts and SA303 forms to show you meet affordability criteria.
Most lenders will require you to prove your income by producing at least two years’ certified accounts (preferably prepared by a certified, chartered accountant), SA302 forms or tax year overviews from HMRC covering the previous two or three years (minimum), evidence of your upcoming contracts (providing you are a contractor), and/or proof of dividend payments and retained profits, should you be a company director. These can depend largely on the lender.
Other documentation you will have to produce will be a passport, a driving license, council tax bills, at least three months of utility bills, and at least six months’ worth of bank statements.
Can I remortgage when self-employed?Callum Marshall2021-06-17T13:47:27+01:00
Yes, you can remortgage if you are self-employed. The process for remortgaging when you are self-employed isn’t drastically different from any other remortgage. The bulk of the difference comes from evidencing your financial income. As with getting a mortgage when self-employed, lenders will look at your ability to make repayments.
If you are remortgaging as a long-term self-employed person, you will likely be required to produce 2 years’ worth of SA302s or accounts up to the time of your application. Evidence of future contracts and revenue streams can be beneficial to your application.
If you are remortgaging as a newly self-employed person, or you have little or no self-employed income records, you could consider remortgaging with the same lender by means of a ‘product transfer’. This means you remortgage with the lender you currently have but change your mortgage to another one that has more suitable rates.
Usually, the minimum interval between securing your mortgage and going for a remortgage is six months. Both variable-rate and fixed-rate mortgages can carry an early repayment charge if you switch mortgages within a certain timeframe, which can range from 1% to 5% of your mortgage debt but can be higher.
For fixed-rate mortgages, if the agreement is that the mortgage rate is fixed for (for example) 2 years, then this is the minimum amount of time that must pass between getting your mortgage and then switching to avoid an exit fee. This is because by leaving before that amount of time, you are breaking the terms of the agreement.
For mortgages as a whole, usually, the first year of your mortgage will have the largest exit fee associated with it. After this first year, the exit fees will reduce towards 0% as you complete the term agreed in your initial mortgage.
Can I remortgage when on maternity leave?Callum Marshall2021-06-17T13:44:51+01:00
It’s possible to remortgage while on maternity leave. Your lender will consider your credit score, financial situation, and history. If while on maternity leave you can evidence earning a steady income that exceeds the affordability requirements, in addition to the usual mortgage requirements, you can likely apply for a remortgage.
A lender is not likely to directly ask if you are on maternity leave, however, they are likely to ask you about your future plans. Honesty is the best policy here, as your financial situation will be likely to change by the end of maternity leave. A lender may ask to see payslips from before you went on maternity leave, bank statements, and/or a letter from your employer outlining what your return date will be, and what your salary will be upon your return. This is to inform lenders of your financial situation before maternity leave, during, and what it is likely to look like after you return.
A remortgage can, on average, take anything from 4 to 8 weeks from making your initial application. Oftentimes, you will have meetings with your lender’s mortgage advisors if you go to them directly. There are a few points to consider if you are looking to go down the remortgage route.
If you are leaving your current mortgage before your current mortgage term, you could incur an early repayment charge or exit fee. It is worth checking the terms of your mortgage and weighing this into your decision. You will also have to consider how your credit score is when you apply, and whether you will be able to exceed the affordability requirements for your new mortgage.
It would also be wise to consider what you want to achieve from your new mortgage. Are you looking for lower monthly repayments? Do you want to be able to pay off your outstanding balance sooner? Is what you want now going to be the same thing in the future?
How is mortgage interest calculated?Callum Marshall2021-06-17T13:43:32+01:00
Mortgage interest rates are set as a combination of the following: the cost of the funds to the lender, the loan to value (the ratio of how much deposit you pay to the amount of money you are borrowing) of your mortgage, what other lenders are setting their interest rates to for similar mortgages, and your credit history.
Like other lines of credit, the mortgage interest rate determines how much you are charged for borrowing the sum to buy a house, and thus how much your mortgage repayments are. The mortgage interest rate will dictate how much the outstanding balance on your mortgage will grow over time.
This depends on your lender(s), and the types of mortgages you have, or seek to have. For residential property, you will likely have to provide evidence for the necessity of additional mortgages, to prevent illegal subletting. For buy to let mortgages, some lenders may impose restrictions, and others might not.
For residential property, as mentioned above, you will likely have to provide evidence for why you require an additional mortgage(s), in addition to the usual mortgage requirements. This is because residential mortgages are cheaper than buy to let mortgages, and lenders don’t want to enable buyers to illegally sublet their properties and earn rental income through deception.
You might seek to have more than one mortgage for work reasons. For example, you might live in one place during the week for work and seek to have another property to live in at the weekends. While this is not impossible to do, many lenders will not accommodate this approach. The main obstacle is affordability.
For buy to let property, some lenders have an exposure limit. This means that they will restrict the number of buy-to-let mortgages you have with them, or they may restrict their total value. Other lenders may put exposure limits on the number of buy-to-let mortgages you have with other lenders. Some lenders may do one or the other, some may do a combination of both, and then others won’t impose any restrictions. It largely depends on the lender.
Can I get a mortgage if I’m retired?Callum Marshall2021-06-17T13:42:03+01:00
You can get a mortgage if you’re retired. Lenders set their own maximum age limits. Often, the maximum age range for taking out a mortgage can be between 65 and 80. The maximum age range for a mortgage term ending can be between 70 and 85. Again, this is variable.
You will likely need to prove that the income from your pension will be more than enough required to cover the mortgage repayments. This is because lenders must follow the MMR (Mortgage Market Review) rules, which requires them to ensure you will be able to keep up with the repayments. Like all other mortgage applicants, your credit history and financial situation will be evaluated to help inform lenders as to whether or not to offer you a mortgage.
Where can I find Help to Buy properties?Callum Marshall2021-06-17T13:41:09+01:00
Quite simply, you can either find listings of Help to Buy eligible properties on the internet, or you can check with a Help to Buy agency to see what is available. You may be restricted in the number of different properties available that fit your criteria, relative to traditional mortgages.
This is because of the criteria that govern what properties are eligible for the Help to Buy scheme. Properties must be newbuilds from registered builders or construction firms and must be of a value of £600,000 or less. The percentage of properties in a given area that fit these criteria in a given area is likely to be less than the total number of properties for sale in the same area, so you may have to shop around!
How long does a Help to Buy application take?Callum Marshall2021-06-17T13:40:39+01:00
On average, a Help to Buy mortgage application can take approximately 6 weeks from your initial application through to owning your home. In some instances, this can be quicker than buying your home through other means, and in others it can be a slightly longer time, depending on the circumstances.
Some of the key differences between this process and buying a house through a traditional mortgage is that you must first establish that you are eligible for the Help to Buy scheme, and then find a dedicated Help to Buy property that you wish to purchase. You will also have to consult with and wait on a Help to Buy agency.
In the Help to Buy Equity Loan Scheme, you put down a 5% deposit on a new build, and the government will then lend you an additional 20%, which is interest-free for 5 years (1.75% annual interest thereafter). With a 25% deposit all-told, you need only apply for a 75% mortgage.
Because your mortgage will be a 75% mortgage, your monthly mortgage payments will be significantly less than if you put only a 5% or 10% deposit down on a mortgage of the same value. The government loan can be paid back at any stage but must be paid back in full within 25 years. If your property increases in value during this period, you will have to pay a percentage of the growth on top of the initial 20% amount.
The conditions for Help to Buy are that the home you are looking to purchase must be from a registered builder or construction firm, with the home valued at £600,000 or less. It must also be your only home. There are no maximum salary thresholds for the Help to Buy scheme.
The upfront fees that come with taking out a mortgage, such as booking fees, arrangement fees and valuation fees are not negotiable. There is no human input over these fees, as they are generated by computer, and you will either pay them upfront, or incorporate them into your overall mortgage.
Some lenders however can, under certain circumstances, let certain existing mortgage customers negotiate their mortgage interest rates and other mortgage fees to a degree later on. These are often not marketed, are entirely bespoke, and you will have to demonstrate to your mortgage provider that you are reliable from a credit point of view.
Is it better to pay mortgage fees upfront?Callum Marshall2021-06-17T13:39:04+01:00
Regardless of your credit score, financial situation or the size of your deposit, there are fees associated with getting a mortgage that must be paid. These can include booking fees, arrangement fees, and mortgage valuation fees. You can often either pay these upfront or have them incorporated into your mortgage.
If you can opt for either option, what you decide to do will depend on your preference and situation. We often see people opt to pay upfront, however, because incorporating mortgage fees into the mortgage means you will accrue interest on them over the life of the mortgage. This means the final sum you pay over the lifetime of the mortgage towards your mortgage fees can be significantly higher than if you had paid upfront.
Sometimes, it may be more viable for you to incorporate the fees into your mortgage. Fees can vary according to your financial situation and mortgage, so it may make more sense for you in the immediate term to pay less upfront.
How often can you use first time home buyer?Callum Marshall2021-06-17T13:38:32+01:00
You can only be considered a first-time buyer if you have never owned a house previously to applying for a mortgage. If you are part of a couple that are looking to secure a mortgage, then to be considered first-time buyers, neither of you can have previously owned a house.
The above does not include owning any commercial property, as the term ‘first-time buyer’ relates only to someone who has not previously owned a house. You can have owned or can currently own commercial property and be considered a first-time buyer if you have never previously owned a house when applying for a mortgage.
How much is a deposit for a first time buyer?Callum Marshall2021-06-17T13:38:08+01:00
As a first-time buyer, saving for a deposit is much the same as for other homebuyers. It will depend on how much you’re able to save and how long you’re able to save for. The average deposit for a first-time buyer in the UK is a 15% deposit of £13,224.
This figure is of course highly variable because it is a UK-wide average. Some houses in some areas will have a significantly more expensive 15% deposits or can have significantly cheaper 15% deposits.
By factoring in how much you can save over a given period, you can aim for a deposit value of your choosing, and you can see what percentage that will be of the value of the properties you are interested in. With the government’s mortgage guarantee scheme, you could save for a 5% deposit for a home, or depending on how much you are prepared to save, you could save up a 15% deposit, or even higher.
It is worthy to note however that the larger your deposit on your home (the greater the percentage), the more likely you will be to secure a mortgage with lower interest rates and lower fees. You will also make smaller monthly payments with a larger percentage deposit for the same mortgage than if you went with a smaller percentage deposit.
The term ‘first time buyer’ refers to people all over the world who are entering the process of buying a house to live in, who haven’t done so beforehand. You can still be a first-time buyer if you have owned or currently own commercial property before buying your first house.
The term excludes people who have owned a house previously but didn’t necessarily buy it (perhaps you inherited a house, or one was bought for you, for example). If you are part of a couple that is looking to buy a house, but one of you has owned a home previously, then neither of you will qualify as a first-time buyer.
When do you pay the deposit on a house?Callum Marshall2021-06-17T13:35:18+01:00
Oftentimes, paying the deposit on your mortgage won’t occur until a little further into the process. You will pay the deposit to your solicitor, who will then transfer the sum onwards. Typically, paying the deposit will occur only when you’re ready to exchange contracts with the seller of the property.
Many lenders will put a limit on the amount of money you can transfer in one day often capped at £25,000. If your deposit is worth more than this, you will have to get in touch with your building society or bank beforehand to arrange a CHAPS (Clearing House Automated Payment System – a high-value transfer system that runs through the SWIFT network) payment to your solicitor.
How much is a 5% deposit on a house?Callum Marshall2021-06-17T13:34:33+01:00
The value of a 5% mortgage on a house depends entirely on its value. To calculate how much a 5% deposit will be, take the house price and divide by 100. Take the answer to this and multiply it by the percentage deposit you want to make. Here’s an example:
The house you want to buy and know you can afford is for sale at £250,000, and you would like to place a 5% deposit.
First divide by 100. So £250,000 divided by 100 = £2,500 (this is 1% of £250,000)
Since you would like to make a 5% deposit, we take £2,500 and multiply it by 5. So £2,500 multiplied by 5 = £12,500
Therefore, a 5% deposit on a £250,000 home will be £12,500
How much does buying a house affect your credit?Callum Marshall2021-06-17T13:33:38+01:00
Taking out a mortgage, providing payments are made consistently on time, can boost your credit score long-term. Oftentimes, getting a mortgage may initially decrease your score. This is a result of a lender checking your credit score by performing a hard credit enquiry, which can slightly lower your score temporarily.
Because a mortgage is a major line of credit, it will definitely show up on your credit score. By making regular, consistent payments towards your mortgage (on time), you can boost your credit score over time. A mortgage can also (again, providing that all payments are made on time) improve the age of your positive credit, which can further boost your credit score.
Furthermore, regular mortgage payments contribute significantly more to your credit score than rent payments. This is because your mortgage is an instalment loan, and therefore is reported on by all credit score agencies. Only some agencies report on rent payments.
Additionally, having a mortgage helps to diversify your credit. A mortgage is a long-term instalment loan, and so having that alongside revolving credit, such as credit cards, you diversify your credit background.
When buying a house, who does the survey?Callum Marshall2021-06-17T13:33:12+01:00
Typically, when buying a house there are two main surveys that occur. One is the mortgage valuation survey, which is organised by the lender and serves the lender’s interest. The other, while not mandatory but certainly recommended for your investment, is an independent house survey, which is organised by you.
A valuation survey is carried out by the lender to ensure that the value and integrity of the property is such that if you default on your mortgage payments, they can repossess the property and sell it to recoup the losses. The surveyor who will visit the property will be working exclusively to the lender’s instruction. Depending on the lender, you may have to pay for this survey to be approved for your mortgage.
Conducting your own, independent house survey is highly encouraged. You are likely going to be investing a huge sum of money on your property up-front, and over a period measured in decades, so it is wise to ensure that all the elements of your property are up to scratch, and that your investment isn’t going to cost you a large sum of money in the future.
There are three tiers of survey you can organise:
Level 1: An RICS Home Survey. This is a basic condition report that checks over the basic condition of the building. These are often suitable for new-builds, small flats and other smaller properties.
Level 2: An RICS Homebuyers Report. This reports both on the condition of the building, and often gives both a valuation and a reinstatement cost. Often, these reports are conducted on standard buildings that are less than 80 years old.
Level 3: A structural survey. This is a broadly scoped report that goes into great depth on the condition and structure of a building. It doesn’t typically include a valuation, but is normally best suited for period buildings, larger buildings, unconventional buildings, or a building that has had work done.
When buying a house, what does guide price mean?Callum Marshall2021-06-17T13:32:10+01:00
The guide price of a property is the rough price that the current owner would like to sell for but isn’t necessarily set in stone. For example, a guide price of £250,000 means that the current owner would like approximately £250,000, but the final value could be greater or smaller.
On occasion, this can be marketed by estate agents as ‘offers in excess of’ (OIEO), or ‘offers in the region of’ (OIRO). It can also be referred to as the ‘asking price’. This is particularly true for higher-value properties.
Estate agents will often use guide prices (and the other ways of referring to it) as a way to encourage prospective buyers to conduct a viewing of the house. It can also be used to encourage negotiation around the price of the property, especially if the seller has some flexibility, or the property holds real development and investment potential.
How much is capital gains tax in the UK?Callum Marshall2021-06-17T13:31:12+01:00
Capital Gains Tax is a tax incurred on the profit you have made when you sell an asset that has seen its value increase. Only the profit is taxed, not the total amount of money received from the sale. The Capital Gains Tax rate depends on your Income Tax rate.
If you pay Higher Rate or Additional Rate Income Tax, then Capital Gains Tax is 28% on the profit from the sale of residential property, and 20% on the profits from the sale of other, chargeable assets.
If you pay Basic Rate Income Tax, then your Capital Gains Tax rate is dependent on the amount of profit you have gained, your taxable income, and other tax relief you are entitled to receive. This can result in a Capital Gains Tax ranging from 10% to 28% depending on what the asset being sold is and its value.
Why do I need a capital raising mortgage?Callum Marshall2021-06-17T13:30:29+01:00
Capital raising mortgages or remortgages can be used for a wide variety of purposes. Typically, they are used to remortgage your home to release funds, which can be used by the homeowner(s) in whatever way they choose. Examples can be buying luxury goods, or to pay off other outstanding debts.
Whether you are looking to invest in renovating your home, looking to pay off some financial debts, or simply want to buy a luxury car, one can consider a capital raising mortgage alongside other, traditional, unsecured loans as a possible course of action.
Capital raising mortgages often carry significantly lower interest rates than typical loans from lenders, which makes them attractive to people looking to use them, though they can increase the size of your mortgage repayments, and the duration of your mortgage term.
Broadly speaking, raising capital refers to a lender or investor supply a business with funds (capital) to enable it to improve its current situation. In the context of mortgages, a capital raising mortgage is typically a way to remortgage a property, releasing funds that can be spent on other things.
Capital raising remortgages can be an attractive, short-term solution to fiscal issues, irrespective of what the money is used for. They often incur lower interest rates than those carried by unsecured loans, however it is worth noting that you could increase the size of your mortgage repayments, and the duration of your repayment term could also increase. You could potentially incur an early repayment charge on your existing mortgage.
How many fees are there when buying a house?Callum Marshall2021-06-17T13:29:17+01:00
At Fees Free Mortgages, we are committed to ensuring you can get a mortgage with no mortgage broker fees. However, unfortunately, there are many other fees associated with buying a house. These include major upfront costs, mortgage costs, ongoing costs, and the costs of moving home to name a few.
Some of the major costs relating to buying a house can include the deposit, stamp duty, a valuation fee, the surveyor’s fee, your solicitor’s fees, electronic transfer fees (from moving large sums of money between accounts) and removal costs. If you are selling a house, you will also have to pay the estate agent’s fee.
You will also likely have to pay mortgage fees. These can include booking fees, arrangement fees, and mortgage valuation fees. It is often best to pay these upfront instead of adding them to your mortgage, so you don’t pay interest on them over the life of the mortgage.
Depending on the condition of the property, and if whether you were able to negotiate the price of the property after findings from the surveyor, you could have house maintenance and repairs to pay for. For new homeowners, this figure averages at approximately £5,750.
You will also have ongoing household bills to consider when you make the move. Your lender will likely require you to have buildings insurance and life insurance policies. It would also be wise to take on contents insurance for your possessions within the property.
Other ongoing bills to consider will be your council tax, utilities and various personal bills. If you have bought a leasehold property, you will also have to pay ground rent and service charges to the person or organisation that owns the freehold.
When buying a house, when do you pay the deposit?Callum Marshall2021-06-17T13:28:00+01:00
Considering it is the focus of a large part of actually obtaining a mortgage, paying the deposit on your mortgage doesn’t occur until further down the line. Typically, paying the mortgage deposit to your solicitor will occur only when you’re ready to exchange contracts with the seller of the property.
It is worth remembering that many lenders will not let you transfer more than £25,000 in one day, so if your deposit is worth more than this, you will have to contact your bank or building society in advance to arrange a CHAPS (Clearing House Automated Payment System – a high-value transfer system that runs through the SWIFT network) payment to your solicitor.
When buying a house, what are the steps?Callum Marshall2021-06-17T13:48:02+01:00
Buying a house is a very particular and profound journey that is as unique to each person as the properties they are looking to buy. In the UK, however, many of the steps to buying a house follow the same themes and order. These steps can be roughly surmised as:
Planning your finances: Pay careful consideration to how you might cope if your fiscal situation changes, there is an increase in interest rates, and to what you can honestly afford to pay back every month for years to come. Pay careful attention to the fees and duties you will have to save up for alongside your deposit. Additionally, make sure to check your credit score, and improve it if you can.
Finding a property that you like and can afford.
Applying for a mortgage product that you like: Should you be successful; you can agree to it as a ‘mortgage in principle’. Fees Free Mortgages can help you with this process fee free!
Making an offer on the property: This will usually be made to an estate agent.
Arranging a solicitor and a surveyor: The solicitor will handle the legal side of buying the property (including researching any planning issues there may be in the local area), and the surveyor will check the property for any subtle problems that may affect your home in the future.
Pending the findings of the surveyor, finalising the offer (perhaps the surveyor or lawyer turned up something that will affect the price of your home in the future, and so you want to negotiate the asking price) and contacting the lender to proceed with the mortgage: You can still pull-out at this stage, but depending how far along the process you are, you might lose some money. This said, it is often better to pull out than risk owning a property that will cost you a large sum of money in the future.
Exchanging contracts: Make sure to go through this with your lawyer.
This depends on your personal circumstances, but there is a range of factors to consider when entering the buy-to-let market. This also depends on what type of investment you are looking to make, and what you are looking to achieve from your investment. Let’s look at some advantages and disadvantages.
The obvious advantages of buy-to-let include the fact that you can earn rental income from properties. In some locations towards the north, your rental yield can reach up to 8%. Additionally, you could experience capital growth as both your investment and the property value increase. Finally, there is a range of insurance options available to protect you against loss of rental income when a property is vacant, and from damage and legal costs.
On the other hand, you will likely have a significantly higher tax bill, and you will have to allow for insurance, natural wear and tear, and stamp duty into your expenses. Furthermore, if you don’t have the correct insurance, then vacant spells and damage to your property will not be covered. Another thing to consider is that if the value of the property falls, your capital will also decrease. With an interest-only BTL mortgage, you will have to make the difference if the property is sold for less than what you bought it for.
Remember that being a landlord is a big responsibility too! You will also have to keep your knowledge up to date of laws, regulations, and your obligations to your tenants.
Why are buy-to-let mortgages interest only?Callum Marshall2021-06-17T13:21:10+01:00
Not all buy-to-let mortgages are interest only, though many are, and many landlords will opt for an interest only BTL mortgage. This is because they will only pay the interest on the mortgage each month, so their monthly payments are lower, and so they can profit more from rental income.
As discussed above, a BTL mortgage typically (and in short) means that the landlord will only pay the interest on the mortgage each month, so the balance owed remains constant throughout the term. However, at the end of the term, they must pay off the balance in full.
By being able to take a greater surplus from monthly rental income (due to smaller monthly mortgage payments), landlords can improve profit margins and can put aside more for unexpected property costs, invest in improvements, or save more to invest in new property.
How many buy-to-let mortgages can I have?Callum Marshall2021-06-17T13:20:41+01:00
The answer to this is highly variable. It largely depends on the lender(s) that you are seeking buy-to-let mortgages from, with some lenders limiting the number of buy-to-let mortgages you have with them, and others limiting the number of buy-to-let mortgages you have at any one time with other lenders.
Some lenders have what is termed an ‘exposure limit’, with can limit the number of buy-to-let mortgages you have with them at any given time (for example, to four or five), or can limit the total value of your total buy-to-let mortgages with them to a set value (£5 million, for example), or a combination of both.
Other lenders will have exposure limits in place for other lenders. This means that to get a buy-to-let mortgage with a particular lender, they will place a restriction on the total number of, or the total value of buy-to-let mortgages that you have with other lenders before they will grant you one. These are highly variable among lenders, but many will not impose this.
There are many factors that can cause a decrease in your credit score. These typically revolve around a person’s failure to pay on time for credit arrangements and bills. To lenders, this indicates the person is at a heightened risk of delaying or failing to make payments in the future.
Some of the common ways people can harm their credit score include not being on the electoral register, paying bills late, home foreclosure, refusal to pay bills, maxing out credit cards, having a credit account written off, defaulting on loans, filing for bankruptcy, high credit card balances and much more.
What’s a bad credit score for getting a mortgage?Callum Marshall2021-06-17T13:19:24+01:00
There isn’t a single, concrete figure for a credit score lower limit to secure a mortgage. There are multiple different lenders that look at multiple different credit reports. Lenders also consider many different aspects of your application and situation before deciding about offering a mortgage.
If you know your credit score isn’t as high as it could be, it is advisable to compare as many mortgage deals as possible. One can also adverse credit mortgages, or sub prime mortgages, which are mortgages designed specifically for applicants with bad credit. These will likely be subject to a greater deposit requirement, higher interest rates and fees, and will likely be few in number to choose from.
It’s normally not impossible to buy a house by securing a mortgage with bad credit, but there will often be restrictions in place. The range available to choose from will be smaller, and depending on the lender, they will carry higher interest rates, fees, and will require a larger deposit.
There is a market for specialist mortgages designed for applicants with bad credit histories. These are often referred to as ‘adverse credit’ or ‘sub prime’ mortgages. They operate in a similar way to traditional mortgages and will likely be subject to similar restrictions to those outlined above. Your income, outgoings and fiscal situation will likely be subject to greater scrutiny on application.
At Fees Free Mortgages, we are experts in giving bad credit mortgage advice, so please don’t hesitate to contact us to discuss your requirements.
The Mortgage Guarantee Scheme is available in England to all homebuyers who can save a 5% deposit. This is on condition that the property will be your only home, located in the UK, and of a maximum value of £600,000. This scheme will run until the 31st of December 2022.
The government has said that they will enable the scheme to be used by lenders for both new-builds and existing properties, but lenders are not obliged to have to include both. Some lenders include both, but others will only include certain buildings and exclude flats and maisonettes. This varies from lender to lender.
The main, and most obvious benefit of 95% LTV mortgages is that they only require a 5% deposit, which means you can save for a deposit in less time. This could be especially important for first-time buyers, as house prices could increase at a faster rate than they can save.
However, as this means that lenders shoulder a greater risk of loss in the event the buyer defaults on their payments, it means that often the maximum amount that can be borrowed is less than mortgages with traditional deposits, irrespective of credit rating and income. This maximum usually sits at £250,000.
Additionally, because of the increased risk to the lender (because they are lending a greater sum of money with less deposit from the buyer), these mortgages will often command a higher interest rate than their counterparts. Usually, the higher the LTV ratio for the mortgage, the higher the interest rates are on the mortgage.
Furthermore, because (for example, in the case of taking out a 95% mortgage) you will start out with 5% of the value of your home, a buyer’s risk of being in negative equity will increase. This can occur when house prices drop, and your left owing more mortgage than the house is worth. As time passes and your percentage of ownership of the property increases, this will be increasingly negated.
Finally, it may be more difficult for you to remortgage. Because your percentage ownership of the property is low (for example, you paid a 5% deposit), your LTV will take longer to decrease to the point where you can get the better rates offered from remortgages.
In the aftermath of the COVID-19 pandemic, many areas in the finance industry were hit, including mortgages. Many high loan-to-value (the ratio of loan to the appraised value of a property) mortgages were discontinued during the pandemic, but thanks to government initiative, 90% and 95% mortgages have returned.
Certain lenders are now offering 90% and 95% mortgages again, that only require 10% or 5% deposits respectively. This means that prospective homebuyers, particularly first-time buyers, can save up for a house deposit faster than they previously could, meaning that you could own your own home sooner than before.
How soon can you remortgage after buying a house?Callum Marshall2021-05-11T08:34:28+01:00
Typically, the minimum amount of time that must pass before you can remortgage your home after taking out a mortgage is six months. Fixed-rate mortgages and some variable-rate mortgages carry an early repayment charge, which is often 1% to 5% of your mortgage debt but can be higher.
If your initial mortgage is, for example, a 1.5% fixed rate for two years, it means your interest rate is guaranteed for that term. By remortgaging before the expiry of this term, you will have switched to another mortgage before your initial fixed term is up, which could mean you will be liable for an early repayment charge.
Oftentimes, the first year of your mortgage will carry the largest early repayment charge, which will then decrease towards 0% as you complete the term agreed in your initial mortgage.
The 95% mortgage guarantee scheme is available for application by all UK-based first-time buyers and home movers. Like other mortgages, you must pass an affordability test to prove you can afford the mortgage repayments, and a credit score assessment to show lenders that you have managed previous debts responsibly.
If your credit history is currently less than excellent, you should begin to improve it at least six months prior to applying for a mortgage. You can do this by setting up direct debits to ensure bills are paid on time, registering to the electoral roll, and more.
In addition to this, it is a good idea to check your credit file before you make your application to ensure it is error-free. Small mistakes, like not updating your address after your previous move could affect your chances of being approved for a mortgage.
How does the 5% deposit scheme work?Callum Marshall2021-04-19T12:19:16+01:00
Running initially between April 2021 and December 2022, the 5% deposit (95% mortgage) scheme aims to make banks and building societies more willing to offer mortgages with smaller deposits by making the government liable for the fraction of the mortgage above 80% should the homeowner default on mortgage repayments.
The mortgages offered as a part of the scheme must only be for residential purchase (you must live in them; buy-to-let and second homes are excluded) only, valued at £600,000 or less, and can be for either existing or new build properties. Repayment type mortgages will be the only type of mortgage on offer under the scheme, and there is the option of an initial fixed rate for the first five years.
Can you pay a 5% deposit on any house?Callum Marshall2021-04-19T12:18:26+01:00
Under the terms of the 5% deposit (95% mortgage) scheme, second homes and buy-to-let properties are not eligible to participate; you must live in the property. Existing and new-build properties, both to a value of £600,000 are eligible for 5% deposit mortgages initially until the 31st of December 2022.
Coming into effect on the 19th of April 2021, the scheme defines the maximum bounds the government will back. Some lenders will differ, for example, Santander will only participate in the scheme with existing builds, not new builds, and will only offer mortgages for flats and other leasehold properties up to a value of £400,000.
A 95% mortgage is a loan from a bank or building society that makes up 95% of the market price of the property you seek to purchase. The remaining 5% is your deposit. With a 5% mortgage deposit, you’ll be able to save up to buy your dream home sooner.
For example, with a 95% mortgage on a £200,000 property, you would need to save £10,000 (the 5% deposit) to be eligible. 95% mortgages typically come with higher interest rates as a compromise, compared to mortgages with a larger deposit. Additionally, as a part of the government’s 95% mortgage guarantee scheme, 95% mortgages will only be repayment mortgages, not interest-only mortgages.
The 95% mortgage scheme is gaining traction among a variety of major lenders. Banks such as Halifax, Lloyds, HSBC, Barclays, and Santander are participating in the scheme, with many more banks and building societies to follow suit in the coming months.
Both building societies and banks are not legally obliged to offer mortgages with 5% deposits, but many have committed to launching 95% repayment mortgage deals to help first-time buyers get their foot on the housing ladder, and to help home movers to release equity. Buyers will have the option of a fixed rate for the first five years too.
How long will the Help to Buy scheme run for?Callum Marshall2021-02-07T12:06:59+01:00
The current Help to Buy Equity Loan scheme has been extended until 2021 through a further £8.6 billion in Government funding. There will be a new scheme available from April 2021 until March 2023, subject to further confirmation. This scheme does not differ drastically from current offerings, with primary disparities seen in house price limits according to region.
What is the Help to Buy Equity Loan?Callum Marshall2021-01-21T09:53:45+01:00
The Help to Buy equity loan (in England) is available to those looking to purchase a new-build property, and able to put down a 5% deposit. As we’ve briefly outlined, the government will lend you a further 20% deposit on top of this on an interest-free basis for the first five years (after this, interest is set at 1.75%, increasing on a yearly basis by the rate of inflation). This loan, combined with your initial deposit payment means you’ll only need to apply for, at most, a mortgage covering 75% of the property price – offering drastically reduced mortgage payments in comparison to buying independently with a small deposit.
The help to buy equity loan is an integral part of the help to buy scheme, provided by the UK government to qualifying applicants. This loan is most often used to provide a 20% deposit ‘top-up’ to buyers purchasing new builds priced at under £600,000 in England. The Help to Buy equity loan is offered on an interest-free basis for the first five years (after this, interest is set at 1.75%, increasing on a yearly basis by the rate of inflation).
The structure of this equity loan alone makes the Help to Buy scheme ‘worth it’ for a huge number of qualifying home buyers, with the initial lack of interest providing a unique offering of financial breathing space, and the large deposit allowing for significantly lower interest rates than those seen on properties purchased with smaller deposits.
Of course, there are restraints to the scheme, notably its restriction to the purchase of new-build homes only – meaning it’s not necessarily for everyone.
In England, applicants qualifying for the Help to Buy scheme must be a UK resident, looking to purchase a new build home for the price of up to £600,000 using the scheme, and a mortgage. This property must be the applicant’s only home, and they must intend to live in it.
Applicants must be able to offer a minimum of a 5% deposit upfront in order to qualify for the further 20% deposit equity loan provided by the government through the scheme.
There is no maximum income threshold for the scheme, meaning even those on high salaries may apply providing all other conditions are met.
How do I get a Help To Buy mortgage?Callum Marshall2021-02-07T12:05:45+01:00
There are many lenders on the market offering specially developed and tailored Help to Buy mortgage packages. If working through the mortgage application process independently, it’s important to shortlist lenders participating in the scheme, before applying to those deemed most suitable. During the application process, lenders, with the assistance of a help to buy agent, will check your eligibility for the scheme, and assess your financial position before proceeding. Both parties must agree on the affordability of the mortgage. Besides this, help to buy mortgage applications are much the same as a standard residential mortgage application. It is highly recommended to source a broker experienced in the help to buy sector, who will work to match you with the most suitable help to buy a mortgage offering for your situation and requirements and assist with the application process.
How are buy-to-let properties taxed?Callum Marshall2021-02-07T12:05:18+01:00
Whilst landlords are generally entitled to £1000 of tax-free income per year, the vast majority of rental income is taxable, and must be declared as part of your self-assessment tax return, whilst those earning specifically between £1000 and £2500 must contact HMRC. Upon filing, income tax for landlords earning above the £1000 threshold will be charged in accordance with income tax banding if applicable. This banding is as follows;
Basic rate – 20%
Higher rate – 40%
Additional rate – 45%
How much deposit do I need for a buy-to-let mortgage?Callum Marshall2021-02-07T12:05:00+01:00
Buy-to-let mortgage lenders generally require a higher deposit than that seen in typical residential agreements. Though this usually sits at around 20 to 30% of the property’s value, it is not uncommon for buy-to-let lenders to require a deposit of up to 40%. These large deposits provide assurance to the lender in the instance of tenant rental default or periods of vacancy.
If you find these high deposit rates daunting, you may wish to seek assistance from a reputable mortgage broker, like Fees Free Mortgages. As a result of our extensive industry knowledge and network, we’re able to source the most secure, suitable, and cheapest deals for our clients.
Buy-to-let mortgages are generally available on both an interest-only, and capital repayment basis.
Interest-only mortgages, a common choice amongst investors, particularly in the buy-to-let market, allows property owners to pay only the outstanding interest on their loan, meaning the borrowed balance is not due until the end of the specified period or term. This method significantly reduced monthly outgoings for landlords and generally allows for the maximisation of rental profits.
Capital repayment, on the other hand, requires the borrower to repay both capital and interest. There are marked pros and cons to each of these repayment options within the context of buy to let properties – it’s highly advisable to discuss these with a mortgage broker experienced in the buy to let sector.
Buy-to-let (BTL) is a common process by which landlords or investors purchase a property with the sole intent of letting for a profit. Though buy-to-let properties are primarily placed within the residential sector, the term also covers investment properties such as student accommodation. Those investing in buy-to-let properties effectively become landlords. Though investors may purchase buy-to-let properties with cash, a common method for securing an investment flat, home, or commercial property is through a buy-to-let mortgage.
When reviewing a buy-to-let mortgage application, lenders will take into account traditional factors such as income and expenditure, whilst noting the potential rental price of the property.
The phrase buying ‘off-plan’ refers to the process of purchasing a property based entirely, or near entirely on specifications, prior to building completion. This complicates the mortgage application and approval process slightly, because delays, setbacks, and the building process as a whole may lead to the need for extensions, renewed offers, and re-evaluation. This lengthy process often results in repeat fees – something we don’t believe in.
The team at Fees Free Mortgages are highly experienced in finding the best possible mortgages for off-plan purchases and know the application and re-evaluation processes inside-out. If you’re looking to buy off-plan for your buy-to-let property, contact one of our friendly advisors today – we’ll be happy to help you.
Can I get a self-employed mortgage with 1 years accounts?Callum Marshall2021-02-07T12:03:26+01:00
Though some lenders insist on reviewing at least two years of certified accounts when processing mortgage applications, it is entirely possible to obtain a self-employed mortgage with only one year of accounts – though options may be slightly limited. If you’re self-employed and looking to apply for a mortgage with one year of accounts, seeking the assistance of an experienced mortgage broker may be the best option to help ensure your application’s success.
Can I get a self-employed mortgage with bad credit?Callum Marshall2021-02-07T12:03:01+01:00
Though bad credit can prove to be a significant hurdle to self-employed individuals trying to obtain a mortgage, it doesn’t necessarily make approval impossible. It is highly advisable to contact an expert advisor or broker prior to application and to apply their knowledge and experience throughout the application, submission, and negotiation process.
Fees Free Mortgages’ experienced advisors will work with you from the very beginning to create the strongest possible application, before sourcing the most suitable lenders for a self-employed individual with bad credit through our extensive network of lenders.
There is no decisive test available to indicate whether or not individuals are self-employed, however, the UK government has specified an extensive list of indicators and guidelines, many of which revolve around your level of independence. According to these indicators, you’re likely to be classed as self-employed if you:
Have the power to dictate how a business is run.
Risk your own money in the business.
Are responsible for the losses as well as profits of your business.
Provide the main items of equipment you need to do your job.
Could send a substitute or are free to hire other people on your own terms to do the work you have taken on and pay them at your own expense.
Are responsible for correcting unsatisfactory work in your own time and at your own expense.
Have the ability to work for others at the same time as providing services for a particular employer.
What documents will I need to provide for a self-employed mortgage?Callum Marshall2021-02-07T12:02:24+01:00
Though document requirements vary slightly from lender to lender, most lenders will require the following documents or evidence as proof of income:
Two or more years’ certified accounts (it is possible to obtain mortgages with one year of accounts, but options may be limited. Further evidence of regular work of income may assist in convincing lenders of your ability to repay in this case.)
Evidence of dividend payments or retained profits (if you’re a company director)
Proof of identity will be required by any reputable lender. This may be required in the form of a:
Council tax bill
Utility bills dated within three months
Bank Statement (these may be examined in-depth as an additional method of establishing mortgage affordability)
Though not essential requirements, having a good credit history, and significant deposit hay help bolster your application.
How is self-employment income calculated for a mortgage?Callum Marshall2021-02-07T12:02:00+01:00
The way in which self-employment income is calculated for a mortgage varies depending on your personal role. Whilst sole traders can expect lenders to look at your pre-tax net profit over the last two years, limited company directors are generally required to submit their salary and dividends from the same period. Company profit may also be taken into consideration, depending on the individual requirements of the lender.
Gaps in income, or high income peaks can affect mortgage calculations equally. If you believe income calculation may be a significant hurdle in your mortgage journey, contact an experienced mortgage broker, such as Fees Free Mortgages. Our friendly advisors are happy to offer impartial advice, and to guide you through the application process.
Can I remortgage to clear my debts?Callum Marshall2021-02-07T12:01:38+01:00
It is entirely possible to use remortgaging to clear debt, however, the lender you choose must have absolute confidence in your ability to repay the additional money borrowed as part of the capital-raising process – meaning you must, at least, have enough equity to support the capital borrowed. Remortgaging is a commonly used method of reducing monthly outgoings, especially in the case of repaying credit and store cards.
Employing the assistance of a mortgage broker experienced in the credit raising field could help find the best possible deals, and ensuring your finances, application, and evidence are as strong as possible – convincing lenders of your ability to maintain payments.
Will having bad credit affect the rate on a remortgage?Callum Marshall2021-02-07T12:01:17+01:00
As is the case with many mortgages available on the UK market, capital raising remortgage rates are at least slightly negatively impacted by bad credit – with interest rates typically being higher for those with bad credit than good. Depending on the extent of past credit issues, the amount of equity required to obtain a remortgage can increase significantly.
Despite this, it’s not impossible to find a good capital raising remortgage deal when applying with bad credit. Employing the assistance of a mortgage broker experienced in the credit raising field could help find the best possible deals, and ensure your application is as strong as possible.
What types of properties qualify for capital raising remortgages?Callum Marshall2021-02-07T12:00:57+01:00
The vast majority of static homes including detached, semi-detached, terraced, and bungalow homes, alongside flats, apartments, maisonettes, shops, garages, surgeries, retail space, holiday homes, bars, pubs, and restaurants can be used in capital raising mortgages and remortgages. Of course, this list extends beyond what can be seen here.
In contrast to this, mobile homes of any kind are generally exempt from capital raising mortgages, this includes mobile homes, caravans, canal boats, and barges.
If you require further clarification on whether or not your property is a suitable fit for capital raising mortgages or remortgages, get in touch with a reputable mortgage broker, whose advisors will be able to offer informed, expert advice.
What can capital raising remortgages be used for?Callum Marshall2021-02-07T12:00:11+01:00
A good route for those who have paid off a significant portion of their existing mortgage or those who have come to the end of their current mortgage’s term, a capital raising remortgage is a secured loan which allows for the release of equity from an owned property.
When remortgaging to switch rates, a property owner would typically borrow an amount equivalent to their outstanding loan, those looking to secure funds generally borrow a higher amount. Though the borrower’s mortgage is now larger, it is affordable, and additional funds previously tied up in a mortgage can be used for a wide variety of purposes, including large purchases, and debt consolidation.
How can I improve my poor credit rating?kat-admin2020-06-04T20:04:46+01:00
To get a mortgage with bad credit may be more tricky. Having bad credit somewhat limits the mortgage options available to you and increases the interest rate. However, there are still options available to you and we advise you to get in touch so that we can present you with the best options available to you.
How do I know if I have bad credit?kat-admin2020-06-04T19:58:52+01:00
Having bad credit could affect your mortgage application. You can, and should, check your credit rating before you apply for a mortgage. This will help you identify whether you will need to apply for a standard or poor credit mortgage, which increases the chance of your application being accepted. Experian, Equifax and Noddle are websites where you can obtain a copy of your credit report.
What are mortgage broker fees?kat-admin2020-06-04T19:55:48+01:00
The mortgage broker fees depend on the broker you are using. Not all mortgage brokers even charge fees! Some brokers will charge upfront fees, completion fees or percentage fees. Fees Free Mortgages are completely fees free as we get paid by the banks that we recommend.
What do mortgage advisors do?kat-admin2020-06-04T19:53:13+01:00
You do not need a mortgage advisor. However, there are many benefits to using one.
Using a mortgage broker ensures you get a fully comprehensive financial assessment and provide you with mortgage deals that you are almost certainly eligible for. Apart from saving yourself a huge amount of research time, you are also benefiting from the larger range of mortgage providers that are available exclusively to mortgage brokers.
With our independent status, you can be sure when working with us, we are providing you with unbiased advice.
Can you get a mortgage without a deposit?kat-admin2020-06-04T18:56:18+01:00
Getting a mortgage without a deposit is now very rare, however not impossible. The only type currently available is guarantor mortgages. This involves adding a family member who already owns a house to your mortgage to be the guarantor.
If getting a mortgage without a deposit is an option you are looking to explore, get in touch and we can explain the available options.
How much money do you need to get a mortgage?kat-admin2020-06-04T18:44:34+01:00
In order to get a mortgage, you will need to be able to have some of your own financial input. Deposits are specific to each individual scenario. Typically, you could put down a deposit of as little as 5% of the property value. This is subject to meeting specific lending criteria which we will be able to assess for you.
Do I need to pay Stamp Duty Land Tax (SDLT) on a Buy To Let property?kat-admin2020-06-04T18:40:14+01:00
The different type of survey that your lender may request to be done on the property you are planning to buy will depend on the type of property it is. It may be beneficial to carry out a full structural survey on your property before you commit to buying it.
The different types of surveys include:
A home condition survey is usually used for new-builds and is the most basic and cheapest one available
Homebuyers report evaluates both inside and outside
A building survey is the most comprehensive as it assesses the full structure of the property and is often used for older properties.
Our mortgage brokers can help you understand what type of survey you may need for the property you are considering.
What insurance do I need to buy a house?kat-admin2020-06-07T16:17:32+01:00
There are different insurance options that you can consider to buy a house. You will most likely be encouraged by your lender to have buildings insurance before the exchange of the contracts. It is not compulsory to have insurance when buying a property but there are policies that can help in difficult situations. An example is income protection which would cover your mortgage repayments for a fixed period of time, should you find yourself unable to work. We can help you understand the different insurance policies that you may need or want to buy a house, so that you can make the best-informed decision.
What are the associated costs with buying a house?kat-admin2020-06-05T08:36:14+01:00
There are some government incentives out there to help if you are a First Time Buyer. There is a Help To Buy scheme created by the government and it consists of two parts; Help To Buy Shared Ownership and Help To Buy Equity Loans. Shared ownership means you can buy shares (25%-75%) of a new or existing property and pay rent on the remaining portion.
The equity loan option means you can get a loan of up to 20% of the purchase cost from the government. This means your deposit only needs to be 5% and your mortgage will be 75%.
Additionally, there is the help to buy ISA, which rewards you with a bonus of up to £3000 if you pay in £1200 in the first month and £200 a month thereafter. If you’d like to know more about these government incentives, please get in touch with Fees Free Mortgages.
How much does it cost to remortgage?kat-admin2020-06-04T13:47:17+01:00
The best time to remortgage is not when the mortgage term comes to an end. You need to start looking for a new mortgage deal at least three months before the expiry date of your current mortgage. However, if for any reason you feel you’d like to find a better mortgage deal for yourself earlier than three months prior to the end of the term, please get in touch and we can help you find the best solution.
How can I remortgage my home?kat-admin2020-06-05T08:33:04+01:00
The first thing to consider when planning for a remortgage your home is to calculate how much you can afford to pay. Consider any additional fees you may need to pay such as an arrangement fee to your new lender or an early repayment fee for leaving your current lender. There may also be legal and valuation fees. When working with Fees Free Mortgages, we take all of that into consideration when presenting you with the best options for your remortgage.
Can I remortgage my home?kat-admin2020-06-04T12:00:18+01:00
Most people are able to remortgage their home and there are plenty of incentives to do so. We can help you explore the different options available to you and help you sift through the numerous deals to find the right one for you when you are ready to remortgage your home.
What happens to my mortgage when I move home?kat-admin2020-06-04T10:13:42+01:00
Unfortunately, your mortgage does not disappear when you move home. Mortgages can be transferred from property to property. It is likely that when buying a new property, you will need to borrow more money. Your lender will ask to value the new property. When moving home, you should check if there are early repayment charges or exit fees with your current lender. When working with our fees-free mortgage brokers we can help you find a deal that helps to cover any of these potential fees that could apply when you move home.
How does the mortgage application process work?kat-admin2020-06-05T08:29:51+01:00
Here is a rough guide on how the mortgage application process works when you work with a mortgage broker. The more you can save for your deposit, the better your mortgage rate can be. However, as a minimum, you will need 5% for the deposit. Once you have a property you’d like to buy, Fees Free Mortgages brokers can assess your needs and circumstances to recommend a mortgage deal that is right for you. When you are happy with the deal, you will receive an Agreement in Principle (AIP) giving you an approximate sum of how much the lender is willing to let you borrow. This allows you to place an offer on your chosen property and if accepted, you will need to appoint a solicitor to handle searches, surveys and contracts. At Fees Free Mortgages we help you throughout the entire mortgage application process.
Will I be accepted for a mortgage?kat-admin2020-06-05T08:28:34+01:00
It may require more effort to get a mortgage when you are self-employed because you have to prove to the lenders that you are able to afford a mortgage. On top of having to provide all the essential documents, business owners, including sole traders, limited company owners, contractors and freelancers will need to provide extra information. Sole traders are required to also provide a minimum of one year’s finalised accounts or an SA302 from HMRC that is dated less than 18 months old. Contractors and freelancers working through a limited company will need to show their current contract, or alternatively personal tax returns or company accounts. Limited company directors will have to provide their latest year’s company accounts or personal tax return as a minimum. Some lenders may ask for two or three years’ accounts. Speak to our advisors to understand what your options are if you are looking to get a mortgage when self-employed.
What type of mortgage do I need?kat-admin2020-06-05T08:25:45+01:00
There are different types of mortgages available. First-time buyers mortgages are more favourable for first-time buyers than all the other mortgage types mentioned below, which would still be available if you were buying your first house. There are also government incentives that help first-time buyers. Buy to let mortgages enable you to buy another property for renting purposes only. The rent payments you expect to receive will determine the amount you are allowed to borrow. Repayment mortgages are where you pay instalments with interest on a monthly basis so that by the end of the mortgage term you would have repaid the entire loan. Interest-only mortgages allow you to only pay the interest on a monthly basis and repay the capital at the end of the mortgage term. This can be a risky option unless you know you will be able to pay off the remaining money when the term comes to an end. Fixed-rate mortgages mean you will be paying the same amount each month for a fixed period of time. If the interest rate falls you may, however, be overpaying. Variable-rate mortgages are also known as Standard Variable Rate (SVR). Your mortgage rate will be determined by your lender but never higher than the base rate set by the Bank of England. Tracker mortgages are determined by the Bank of England’s base rate. Discount rate mortgages are only available for a fixed period of time but maybe one of the cheapest options available, as they are linked to SVR. Cashback mortgages mean that you get a percentage of the loan back in cash from your lender. It is possible though, that these would not be the most attractive deals due to the interest rate and additional fees. Offset mortgages combine your savings and mortgage together. These deduct the amount you have in your savings, meaning you only pay interest on the difference between savings and mortgage. 95% mortgages are a good option for those with only a 5% deposit. If house prices go down, there is a higher risk of going into negative equity when using this type of mortgage. Flexible mortgages allow overpayment when you can afford it and may allow for missed payments if you’ve chosen to overpay. The mortgage rate, however, does tend to be higher on flexible mortgages. Our mortgage advisors can assess your situation and make appropriate recommendations for the correct type of mortgage for you.
What information does a mortgage advisor need?kat-admin2020-06-05T08:23:31+01:00
When working with our free mortgage advisor, the information they need begins with getting an overview of those who wish to be named on a mortgage. We would then perform affordability checks, assessing household income and outgoings. To provide you with the best deal options our mortgage advisor would need to understand what your objectives are.
Some of the documents that you’ll then have to gather include:
Last three months’ payslips
Proof of any benefits you receive
Proof of ID (passport or driving licence)
Current account bank statements for the last 3-6 months
Switching lenders may sometimes lead to early repayment charges. If your early repayment period has not come to an end before you decide to remortgage, you may be charged with a fee. The only way to avoid the early repayment charge is to wait until the deal ends. In some cases, the benefits of remortgaging to a more attractive deal may outweigh the charges incurred by exiting the current deal too early. It is always worth getting advice from an independent mortgage broker before you make the decision though.
How much can I afford to borrow?kat-admin2020-06-04T09:29:57+01:00
What mortgage you can afford to borrow will depend on several factors. The general rule is that the lender will lend you up to 5 times your salary. However, aspects such as your age, number of dependents and financial commitments will be taken into consideration to work out the realistic amount of monthly repayments you can afford, after all your living costs and other liabilities have been paid. As part of our service, we can help you understand how much you can borrow, which will allow us to point you to the correct lenders.
How much do I have to earn to get a mortgage?kat-admin2020-06-04T09:25:09+01:00
There is no specific amount that you need to earn to be eligible for a mortgage. However, your financial security does play a part when lenders are considering you for a mortgage. At Fees Free Mortgages we can help you calculate how much you’ll be able to borrow on the salary you are on now.
How to get a mortgage?kat-admin2020-06-05T08:22:20+01:00
When working with one of our mortgage advisors, we can help you get a mortgage, hassle-free. The process would start with the mortgage broker getting an overview of those who wish to be named on a mortgage. We would then perform affordability checks, assessing household income and outgoings. To provide you with the best deal options we would need to understand what your objectives are. Some of the documents that you’ll then have to gather include:
Last three months’ payslips
Proof of any benefits you receive
Proof of ID (passport or driving licence)
Current account bank statements for the last 3-6 months
The way mortgages work is just like any loan. Mortgages are loans that help you buy a property. Typically, you need to put in at least 5% of the property value of your own money and the remaining amount is covered by the mortgage, loaned to you by a lender. You’ll then begin to pay this back on a monthly basis, generally over a period of many years.
No! Coronavirus will not stop you from remortgaging. Advances in technology mean that we can conduct our initial discussion via telephone and we can email you our recommendations. The application process too can be completed with online ID checks and digital documents.
Get in touch to start your remortgaging process now!
What are the approximate timescales for a Purchase and a Sale to complete?generateleadsonlineuk2020-06-04T17:49:45+01:00
Not all mortgage brokers charge fees! Some brokers will charge upfront fees, completion fees or percentage fees. Fees Free Mortgages are completely fees-free mortgage brokers in Essex & Suffolk, as we get paid by the banks that we recommend. We are completely ‘whole of market‘, independent and unbiased, so will always strive to get you the best mortgage rates and the mortgage deal that suits you.
If you are wondering where to start buying a house for the first time, contact us for free advice. Our mortgage advisors will take the time to explain the process in simple steps. We will also help to assist with other services you will need along the way for example; valuations, insurances and finding a solicitor.
A mortgage advisor will need to get an overview of those who are named on, or wish to be named on a mortgage. An idea of household income and outgoings will assist the advisor to make affordability checks. Most importantly the advisor will need to get an overview of your objectives, finding out exactly what you’d like to achieve!
Yes, you can borrow more money on top of your current mortgage, subject to meeting mortgage lender’s criteria. Many homeowners borrow more to improve or extend their home, or to consolidate their other outgoings.
Yes, in some circumstances you can either shorten or lengthen your mortgage term. It’s recommended that a qualified advisor get to know your situation and your motives to be able to advise accordingly on this.
How much deposit you need for a mortgage is specific to your individual scenario. Typically, you could put down a deposit of as little as 5% of the property value. This is subject to meeting specific lending criteria which we will be able to assess for you.
A fee free mortgage is exactly what it says – a mortgage without a mortgage broker fee. There can be many fees which could be involved when you mortgage or remortgage, however one fee that we don’t charge is a ‘mortgage broker fee’. Fees Free Mortgages just get paid by the bank – simple!
No, not all mortgage advisors charge a fee! Some brokers will charge upfront fees, completion fees or percentage fees. Fees Free Mortgages are completely fees free as we get paid by the banks that we recommend.
A mortgage product fee is often known as an arrangement fee. Banks usually offer lower rates but with a fee which can either paid upon application or added to the loan on completion. We’ll calculate whether it’s worth paying the arrangement fee for you!
If your preferences are that you would prefer an option where you can avoid the early repayment charges, we can base our research on this preference. A small number of lenders offer fixed or tracker rates where the entire loan can be repaid, in full, without penalty.
A mortgage advisor who is ‘whole of market’ is a mortgage broker who has access to the entire mortgage market. Some advisors are ‘tied’ and only have access to a certain panel of lenders.
Our ‘whole of market’ independent mortgage brokers in Essex & Suffolk give a personal touch of humility behind our mortgage support and the fee-free mortgage advice given, ensuring every interaction with us is a positive experience.
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Looking for mortgage help? Get in touch with Fees Free Mortgages today. The top mortgage broker Ipswich.