It is the first question that comes into the mind of every home buyer and asked frequently. There is no set formula for this. Every lender has different lending criteria and limits. An advisor will need to know your income, expenses, benefits, credit contract payments and other information to tell you how much you can borrow. The value of the property that you want to buy, the amount of deposit and your credit history will also affect the amount you can borrow. We offer a free initial consultation, feel free to contact us to discuss your requirements.

A mortgage broker is a professional who specialises in mortgage-related advice. The advisor will assess your needs and preferences and find you a deal that meets these needs and expectations.

It is a type of loan which is secured against the property itself. It is called secured lending. If the borrower is unable to repay the loan or interest, the lender can take procession and sell the property to recover the loan.

Remortgage is switching the existing lender with a different one. It could be for a variety of reasons which may include finding a better deal, increasing borrowing limits, reducing cost, change in the circumstances, change in lending criteria of the existing lender and better terms.

There are many types of mortgages; however, two of the main types are; Fixed-rate mortgages – The interest rate is fixed for a certain period. Therefore, the monthly payment will remain fixed throughout the specified period. Typically rates are fixed for 2, 3 or 5 years. Some lenders offer up to 10 years of fixed-rate deals. Variable-rate mortgages – In this type of deal, the rate is variable, so is the monthly payment. The interest rate can change at any time and this will result in a change in monthly payments.

A decision in principle is simply a provisional agreement from the lender which indicates that the lender may be willing to lend the specified amount subject to full application and meet underwriting requirements. A DIP is useful when making an offer on a property. It assures the estate agents that the buyer is keen in buying the property on which they are making an offer.

When deciding on lending, the lenders want to know whether the property on which they are lending is adequate security. To make an informed decision, the lender will appoint a qualified surveyor who will visit the property and submit their report on the value and suitability of the property.

Although the valuation survey is carried out for the benefit of the lender, however, it is the borrower who pays the fee. The fee usually is non-refundable. To attract buyers, some lender will offer a free survey.

When buying a house, there will be multiple set of costs involved. In a typical house purchase following costs may be incurred; Conveyancing Cost – payable to solicitors for legal work and property searches. Stamp Duty Land Tax – payable to HMRC. Your solicitors will calculate this, collect from you and pay to HMRC on your behalf. There are some exemptions for first time buyers. Survey Fee – Payable to the lender to carry out the property valuation survey. Mortgage Arrangement fee – payable to the lender. Some lenders give the option to add the arrangement fee in the loan amount. Mortgage broker fee – Payable to your mortgage advisor.

If you have a low credit score, you may still qualify for a mortgage loan. Some lenders are willing to work with borrowers who have financial challenges. We can assist you in finding a suitable lender for your needs. Please contact us to explore your options. However, you should be aware that the interest rate may be higher for borrowers with poor credit history than for those with good credit history.

Mortgage term depends on your affordability. However, in most situations, your mortgage should have been paid before your intended retirement age. We discuss this with you during our fact-finding meeting.

Yes, you can repay your mortgage loan at any time. However, if you have a fixed or a special deal, the lender may charge you an Early Repayment Charge. Your mortgage offer letter has details of any such charge.

There is no simple answer to this. Your current circumstances, priorities, plans, affordability, lender criteria and costs of lending all are to be taking into account to decide which solution is best for you. We, your mortgage advisors, are here to help you in determining the best solution for you.

APR or annual percentage rate is used for personal loans and credit contracts other than a mortgage. APR includes the standard fees and interest rate you pay on loan. It is helpful when comparing loans to find out which one is best. APRC or annual percentage rate of charge is used for secured loans and mortgages. APRC includes all the charges ( fees and other costs) and calculated on the basis that the mortgage is kept for the full duration without a change. APRC is used to compare mortgage and secured lending products.

Affordability is the test that every lender applies to decide whether to lend and how much to lend. The test takes into consideration the income, expenses, existing credit commitments and amount of deposit available.

It means the total period during which the loan, including interest on it, is to be repaid in full. The mortgage term is dependent on the preference of the borrower, their affordability, intended retirement age and lender’s criteria.

Loan to Value or LTV is the term used to calculate the amount of loan as a percentage of the value of the property. It is the maximum amount a lender will lend. LTV also affects the interest rate changed on loan. The high the LTV, the higher will be the interest rate. For example – if the value of a property is £100,000 and the lender is willing to lend £90,000 on that property. The LTV will be 90%.

Equity is the value of your investment in the property. If a property is valued at £100,000 and you have a mortgage of £75,000 on it, the equity in the property will be £25,000.

A credit report is a detailed view of your credit performance over the period. It shows your active accounts, outstanding credit balances, searches on your report, on-time payment, late payments, defaults and CCJs. The company which keeps and maintains this report is called the credit referencing agency. A credit score is a numerical snapshot of your credit performance. The credit score is affected by defaults, the number of credit searches, amount of credit held and other factors.

The vendor means the seller of the property.

Specialist lending plays its role where a borrower does not meet the standard lending criteria. Specialist lender can accept applications from such borrower. The risk factor is reflected in higher interest rate. However, due to increased competition, the difference of interest rates is reducing.