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How do I apply for a mortgage?

To start the process, you’ll need to determine how much you can afford to borrow. Reach out to a trusted mortgage advisor who can search the entire market for the best deal. They’ll also guide you through gathering the necessary documents.

What does “mortgage affordability” mean?

Mortgage affordability refers to how lenders assess whether you can comfortably manage monthly mortgage payments. Each lender has its own criteria for this, and they may perform stress tests to ensure you can afford payments at different interest rates.

What is “Loan to Value” (LTV)?

Loan to Value (LTV) shows how much you’re borrowing compared to the property’s value. For instance, if you’re purchasing a property worth £100,000 and borrowing £90,000, your LTV is 90%, meaning you’d need a £10,000 deposit.

What is an interest-only mortgage?

An interest-only mortgage means you pay only the interest on your loan during the term, which leads to lower monthly payments. However, at the end of the term, you still owe the original loan amount, and you’ll need to repay it through a lump sum or by switching to a repayment mortgage.

What is a “Decision in Principle”?

A Decision in Principle (also called an Agreement in Principle or Mortgage in Principle) is a document from a lender that confirms, based on a basic assessment of your financial situation, you could be eligible for a mortgage. It’s not a final offer and doesn’t apply to any specific property.

How much can I borrow?

The amount you can borrow will depend on factors like your income, existing financial commitments, dependents, age, and the type of property you’re looking to buy. Each lender has different criteria for how much they’re willing to lend.

How much deposit do I need?

Typically, you’ll need a deposit of at least 5% of the property’s value. However, some mortgage products may require a higher deposit, depending on your situation and the lender.

Can I get a mortgage if I’m

self-employed?

Yes, you can get a mortgage as a self-employed person. Most lenders will require 2-3 years of proof of income. However, some lenders will accept just one year’s worth of financial records, so don’t hesitate to contact us for more options.

Which lender is the best?

There’s no “one size fits all” answer to this. The best lender for you will depend on your unique financial situation and what you’re looking for in a mortgage. Our job is to help you find the lender that’s right for you.

How long does the mortgage application process take?

On average, it can take 6-8 weeks to complete the mortgage process. However, the timeline depends on how quickly you submit your documents and the lender’s current processing times. A good advisor will help manage expectations based on your specific situation.

What documents do I need to apply for a mortgage?

The required documents depend on your employment type. Employed applicants will need recent payslips, while self-employed applicants will generally need tax documents like the SA302 and Tax Year Overviews. Directors of limited companies will need their business’s accounts from the last 2-3 years.

What is stamp duty and how much is it?

Stamp Duty (or Stamp Duty Land Tax) is a tax you pay when transferring property ownership in the UK. It’s calculated based on the price of the property you’re purchasing. The amount of stamp duty depends on the value of the property and your circumstances. You can use HMRC’s online calculator to estimate the amount you’ll need to pay.

Can my family help me buy a home?

Yes! Many people use family support to get on the property ladder. This could be a cash gift for your deposit, or even a family member joining you on the mortgage to increase your borrowing power.

What is a product transfer?

A product transfer is when you switch to a new mortgage product with your existing lender, usually when your current mortgage deal ends. It’s an easy way to stay with your lender but benefit from a new deal.

What is an offset mortgage?

An offset mortgage links your savings to your mortgage. Instead of earning interest on your savings, you reduce the mortgage balance with your savings, which can lower your monthly payments and potentially help you pay off your mortgage faster whilst still having access to your savings should you wish to use them.

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