Some of the common questions we receive are answered below. If you have any other questions you would like to ask, or would simply like a review of your situation and a chat through your options, please fill in a request form and and how you prefer to be contacted and a broker will be in touch.
A mortgage is a charge placed onto a property by a Bank/Lender. The client traditionally puts some of their own money down as a deposit, and the lender adds the rest to buy the property. The lender does not own any part of the property, but can repossess the property should the client not keep up repayments. The client is assessed based on the lenders requirements to see if they are eligible for a mortgage.
Standard mortgages are what is known as a first charge against the property you are buying. They don't own part of the property, you own it, but if for any reason you have to sell it, the first charge is paid off first (hence the name) and you get what is left (unless there is a second charge). You borrow (usually) a large amount of money at a certain rate of interest and pay it back in monthly installments. You can pay the loan on a repayment or an interest only basis, the latter not common on residential property. On a repayment mortgage, the monthly amount you pay to the bank/lender will include interest and capital, so if your mortgage is £500pcm, it may be £200 capital and £300 interest. So £200 is effectively coming back to you in equity in the property (as long as house prices are stable). Compared to renting, where you pay your landlord rent each month and see nothing back, a mortgage can be financially beneficial in the long run.
Speak to a mortgage broker. They will assess your situation and will go through what you need to provide, what a lender will ask and usually give you an indication of how much you can borrow and what your monthly payments may be. A short phonecall could save you hours of trawling each lender individually and brokers can give advice, lenders usually can't. A broker has the entire mortgage market to choose from and could save you money by finding you the best lender/rate for your circumstances.
You will need at least: -
A mortgage broker will compare the mortgage market and can offer you all the rates from lenders/banks in one place. They will save you time, effort and usually money as they may have access to lenders and rates you cannot get direct from a mortgage lender. The thing to watch out for here, is always make sure your broker is 'Whole of Market', which means they have access to every lender and every rate out there. Some brokers are on limited panels, meaning they don't have access to some lenders, even the larger high st banks in some cases. If they don't tell you they are 'Whole of Market', they probably are not and you should compare with someone who is.
It depends on your situation and personal circumstances. A lender will want to know your income and will typically lend between 4x and 5x that income (combined income for joint applications). They will also take into account commitments such as children, loans, credit card balance, finance, other mortgages and credit history. Other factors such as age, nationality, and retirement are considered when deciding your loan amount.
According to HMRC, a First time buyer (FTB) is someone who has never owned a property anywhere in the world. Some lenders will will treat you as a FTB if you haven't owned a property in the UK for several years, meaning you can access their FTB rates/products, but for tax reasons, you can't have owned any property before.
Apart from the odd exception in the past few years, 5% has been the minimum deposit amount required by most lenders. There are some who have schemes where it is possible to get a mortgage without a deposit if you have family with property or spare money to lock in a savings account, but traditionally 5% is the minimum requirement. However, the more you have, the better mortgage rate you can get. Lenders base their rates on risk, so if you buy a property with 5% deposit and the housing market drops 10%; if they have to repossess your property they are not getting their money back. As lenders/banks like money...a lot...they will only offer a high interest rate for a 5% deposit. If you have 50% deposit, you are a very low risk of them not getting their money back, so they will offer you a better rate.
You have a few options. You do nothing and slip onto the lenders Standard Variable Rate (SVR) which is typically between 3% and 5%, so not a good idea. You can sell up without penalty. You can do a Product Transfer, staying with the same lender and picking a new rate, usually without any further documents or assessment. Or, you can remortgage, which basically means starting again, being assessed by a new lender and being able to change everything about the mortgage.
There are several types of contractor and all have lenders potentially willing to lend, including some specialists. Whether you are employed or self employed, day rate, short term, fixed term, CIS, umbrella company etc, there should be a lender for you. The typical requirements are 12 months or more contracting experience as a minimum, but even without this a mortgage may be possible. Speak to a broker and they'll advise on the best option for yo
Yes, Construction Industry Scheme (CIS) contractors can get a mortgage. In some ways, it can be easier than a more traditional contractor to secure the borrowing.
Possibly, It depends on the level of bad credit you have and each lender has their own criteria. The best thing to do is to download your credit report and send it to your broker. They will assess it and let you know your options, there may be more than you think.
As above, probably. If you can't remortgage, you may be able to do a Product Transfer, changing your rate with your current lender to still have something competitive. Again, the best thing to do is to download your credit report and send it to your broker to assess.
Typically you will need two years accounts submitted to HMRC to show earnings, but some lenders will work from one years accounts if you've only been trading a year. Lenders vary on the income they will use for affordability, and consider salary, net profit (or share of) and dividends, so it depends on your type of self employment.
Read the reviews, ask friends/relatives for referrals, do your own research. Another good tip would be to shop around. Speak to a few and find someone you like, who explains things clearly and transparently and you would trust to look after one of the most important areas of your life on your behalf. At Stratton Regent, we pride ourselves on sharing our knowledge with our clients and always tell them the rate, lender and product we recommend, and why we feel it is best for the situation they are in.
Brokers are paid by the lenders and insurance providers they deal with, however, most brokers do charge a fee for their time. The reason for this, is that they traditionally get paid at the end of a transaction/after completion of a mortgage. If they spend time researching, detailing, applying for the mortgage and it doesn't go through, they don't get paid for their time.
If you have any other questions you would like to ask, or would simply like a review of your situation and a chat through your options, please fill in a request form and and how you prefer to be contacted and a broker will be in touch.
Stratton Regent & Stratton Regent Financial Services are trading names of EDH Bracken Ltd who are an Appointed Representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK please note all calls to and from Stratton Regent may be recorded for training and monitoring purposes. Stratton Regent and Stratton Regent Financial Services are trading names of EDH Bracken ltd, registered in England & Wales with registered company number 11161946.
Your home or property may be repossessed if you do not keep up repayments on your mortgage
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