Frequently Asked Questions

The mortgage application process usually starts with an initial consultation, during which the broker will ask about your financial situation, income, expenses, and credit history. They will then use this information to recommend suitable mortgage products, and help you complete and submit the application.

You will typically need to provide proof of identity (e.g. passport or driving licence), proof of income (e.g. payslips, tax returns, or bank statements), proof of address (e.g. utility bills), and information about your outgoings (e.g. credit card statements, loan agreements).

The broker will usually conduct a credit check to assess your creditworthiness. This involves reviewing your credit history and score to determine your likelihood of being approved for a mortgage. If you have a poor credit score, you may still be able to secure a mortgage, but you may face higher interest rates and stricter borrowing requirements.

Once your application has been submitted, it will be reviewed by the lender’s underwriting team. This involves verifying the information you provided and conducting additional checks, such as employment and income verification. The underwriter will then make a decision on whether to approve or decline your application.

Lenders will typically use a range of factors to assess your affordability, including your income, expenses, credit history, and other financial commitments (e.g. other loans, credit cards, or childcare costs). They will also consider factors such as the size of your deposit, the property value, and the loan-to-value ratio (LTV) of the mortgage.

In addition to credit and affordability checks, lenders will usually conduct a valuation of the property to assess its value and condition. They may also require you to take out mortgage protection insurance or other types of insurance, such as building insurance or life insurance.

The mortgage application process can take anywhere from a few days to several weeks, depending on a range of factors such as the complexity of your application, the lender’s processing times, and the speed at which you provide the required documentation. Your mortgage broker should be able to give you an estimated timeline based on your specific circumstances.

The cost of using a mortgage broker will vary depending on the broker’s fee structure. Some brokers charge a fixed fee, while others charge a percentage of the mortgage amount. It’s important to clarify the fees upfront so that you can make an informed decision.

There are many different types of mortgages available, including fixed-rate, variable-rate, tracker, offset, and buy-to-let mortgages. Your mortgage broker can help you understand the differences and find the best product for your needs.

A fixed-rate mortgage offers a set interest rate for a fixed period of time, typically two to five years. A variable-rate mortgage, on the other hand, has an interest rate that can go up or down depending on changes to the Bank of England base rate.

A tracker mortgage is a type of variable-rate mortgage where the interest rate is linked to the Bank of England base rate. This means that your repayments will go up or down in line with changes to the base rate.

An offset mortgage allows you to offset your savings against your mortgage balance. This means that you only pay interest on the difference between your mortgage balance and your savings balance, potentially saving you money on interest payments.

A buy-to-let mortgage is a mortgage designed for people who want to buy a property to rent out. These mortgages typically have different requirements and interest rates than standard mortgages.

A mortgage broker acts as an intermediary between borrowers and lenders, helping borrowers find and secure the best mortgage deal for their needs. A mortgage lender is the financial institution that actually lends the money for the mortgage.

Yes, self-employed people can still get a mortgage, but the requirements may be different. Lenders will typically ask for proof of income, such as tax returns or accounts.

A deposit is the amount of money you pay upfront towards the purchase of a property. The size of your deposit will affect the size of your mortgage and your monthly repayments.

Loan-to-value (LTV) is a measure of how much you are borrowing compared to the value of the property. For example, if you are borrowing £150,000 to buy a property worth £200,000, your LTV would be 75%.

A mortgage agreement in principle (AIP) is a statement from a lender that indicates how much they would be willing to lend you based on your financial situation. It’s not a formal offer of a mortgage, but it can be useful when making an offer on a property.

A remortgage is when you switch your existing mortgage to a new product or lender. This can be done to save money on interest rates or to release equity from your property.

It may be possible to get a mortgage with bad credit, but it can be more difficult and you may face higher interest rates. Your mortgage broker can help you understand your options and find the best deal for your circumstances.

A mortgage payment holiday is a temporary break from making mortgage repayments. This can be useful if you are experiencing financial difficulties, but it’s important to understand the impact it may have on your overall mortgage balance and interest payments.

A guarantor mortgage is where someone else (usually a family member) guarantees your mortgage repayments. This can be useful if you have a low income or poor credit history, but it’s important to understand the risks and responsibilities involved.

A mortgage survey is an inspection of a property to assess its condition and value. This is usually carried out by a qualified surveyor and is required by the lender before they approve your mortgage.

A mortgage offer typically lasts for between three and six months, depending on the lender. This means that you will need to complete your property purchase within this time frame, or risk losing the mortgage offer.

A mortgage deed is a legal document that outlines the terms and conditions of your mortgage. It is signed by both you and the lender and sets out the amount borrowed, the interest rate, and the repayment terms.

A mortgage exit fee is a charge that is applied when you pay off your mortgage in full. This can be a percentage of the outstanding balance or a fixed fee.

Mortgage protection insurance is an insurance policy that pays out in the event that you are unable to meet your mortgage repayments due to illness, disability, or unemployment.

A repayment mortgage involves paying off both the interest and the capital borrowed over the term of the mortgage. An interest-only mortgage only requires you to pay the interest on the loan, with the capital repaid at the end of the term.

A mortgage broker fee is a fee that is charged by the broker for their services. This can be a fixed fee or a percentage of the mortgage amount, and is usually payable when the mortgage completes.

A mortgage offer is a formal offer from a lender to lend you the money for a mortgage. This is based on the lender’s assessment of your creditworthiness and the value of the property.

A standard variable rate (SVR) is the default interest rate that a lender charges on its mortgages. This rate can go up or down at any time, depending on changes to the Bank of England base rate or other factors.

A mortgage deposit guarantee is a type of insurance that guarantees the lender will not lose money if you default on your mortgage repayments. This is usually required if you have a low deposit or a high LTV.

A mortgage overpayment is when you pay more than your required monthly payment towards your mortgage. This can help you pay off your mortgage faster and save money on interest payments.

A mortgage valuation fee is a fee charged by the lender to cover the cost of valuing the property you are purchasing. This is usually required before the lender approves your mortgage.

A mortgage completion fee is a fee charged by the lender when your mortgage completes. This fee covers the administration costs of setting up the mortgage.

A mortgage product fee is a fee charged by the lender for setting up the mortgage product. This fee can be paid upfront or added to the mortgage balance.

While a mortgage broker focuses solely on helping clients find and secure the best mortgage deal, a financial advisor provides a wider range of financial advice, including investments, pensions, and savings. Some mortgage brokers may also offer financial advice, but this is not their primary focus.

Yes, it is possible to get a mortgage if you are on a fixed-term contract. Lenders will typically require proof of income, such as payslips or a contract of employment.

A mortgage arrears fee is a fee charged by the lender if you fall behind on your mortgage payments. This fee can be a fixed amount or a percentage of the outstanding balance.

A mortgage term is the length of time over which you will repay your mortgage. Typical mortgage terms are 25 or 30 years, but shorter or longer terms may be available depending on the lender.

A mortgage porting fee is a fee charged by the lender if you choose to transfer your existing mortgage to a new property. This fee covers the administrative costs of transferring the mortgage.

A mortgage indemnity guarantee (MIG) is a type of insurance that protects the lender against losses if you default on your mortgage repayments. This is usually required if you have a low deposit or a high LTV.

A mortgage offer expiry date is the date by which you need to complete your property purchase in order to secure the mortgage offer. If you do not complete within this timeframe, you may need to reapply for a new mortgage offer.

A mortgage deed of trust is a legal document that sets out the ownership of a property and the terms of any mortgage on the property. It is usually used in joint ownership situations or when a third party is involved in the mortgage.

A mortgage interest rate is the rate of interest charged on your mortgage balance by the lender. This rate can be fixed, variable or a combination of the two, and will affect your monthly repayments and overall cost of the mortgage.

A mortgage early repayment charge is a fee charged by the lender if you repay your mortgage early. This fee can be a percentage of the outstanding balance or a fixed amount, and is designed to compensate the lender for the loss of interest payments.

A mortgage payment shortfall is when you are unable to make your required mortgage payments in full. This can lead to arrears fees and other charges, and can ultimately result in repossession of the property.

A mortgage completion date is the date on which your mortgage completes and the funds are transferred to complete the purchase of the property. This is usually the same date as the property completion date.

Mortgage indemnity insurance is a type of insurance that protects the lender against losses if you default on your mortgage repayments. This is usually required if you have a low deposit or a high LTV.

A mortgage interest rate cap is a limit on the maximum interest rate that can be charged on your mortgage. This can be useful if you have a variable-rate mortgage and want to protect yourself against interest rate increases.

A mortgage payment is the amount you pay each month towards your mortgage. This payment typically includes both the interest and the capital, and is calculated based on the size of your mortgage, the interest rate, and the term of the mortgage.

A mortgage repayment term is the length of time over which you will repay your mortgage. This term is usually expressed in years, and will affect the size of your monthly repayments.

A mortgage early repayment is when you repay some or all of your mortgage balance before the end of the term. This can be done to reduce your overall interest payments and shorten the term of the mortgage.

A mortgage arrangement fee is a fee charged by the lender for arranging the mortgage. This fee can be a fixed amount or a percentage of the mortgage amount, and is usually payable when the mortgage completes.

A mortgage offer acceptance is the formal acceptance of a mortgage offer by the borrower. This is usually done by signing and returning a copy of the mortgage offer to the lender.

A mortgage interest-only period is a period of time during which you only pay the interest on your mortgage, without repaying any of the capital. This can be useful if you have lower income during a certain period, but it’s important to have a plan in place to repay the capital at the end of the period.