F A Q

We have detailed all the Frequently Asked Questions for Mortgages and Protection and to make it easier for you, separated them into their categories as :-Mortgages, Life Insurance, Mortgage Payment Protection, Home Insurance, My Credit Report, and Wills

Here you will find answers on Mortgages –

Mortgages

 

What is a Mortgage? A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.

What are home loans? These could either be a mortgage or secured loan on your property. The mortgage works in a similar way to the loan but is usually taken over a longer period of time.

How much mortgage do I need? This depends upon the purchase price and the amount of deposit you have. Purchase price less deposit equals the mortgage you would need.

How much can I borrow? Lenders use to calculate this on a (x) times your annual salary, today this is calculated on affordability. It takes into consideration if your single or with a partner, how many dependent children you have, your salary(s) your present financial commitments ( loan, secured loans, credit cards, store cards, car loans and any other HP) If you are consolidating debt of consolidating loans, as consolidation of existing commitments will have an impact on how much you can borrow.

Where can I find the best mortgage deals, best mortgage rates? This is a large question because best mortgage to you is not necessarily the mortgage that’s best, to the next person, it all depends upon what mortgage you want and what you see as best. Is it, mortgage rates, best mortgage offers, where to find a mortgage you’ll be accepted for, fixed mortgages, low mortgage deposit, what are the top 100 mortgages deals, long term best rates mortgage, initial low mortgage interest rate, non house mortgage, mortgage to let, let to buy mortgages, buy to let mortgages and so on. As you can see pinning down the best can be tricky because the best is so big. Your best to take advice from a whole of market adviser who will show you the top mortgage deals, what is available and what your option are as this will be specific to you and what you want and be the best mortgage deal that is available for you. They will look at the best UK mortgages available and recommend which one is the most appropriate for you.

Which Mortgage in the UK is the best one? This can change on a day by day basis and also what is mentioned above. The best way is to speak to a mortgage advisor who will be aware know of these daily changes.

Where can I find a mortgage repayment calculator and which mortgage calculator is the best one? There are many repayment mortgage calculators online that will calculate your monthly mortgage uk payments after you have filled in a) the amount you want to borrow b) the term c) if it is interest only or repayment (mortgage calculator UK) and d) the interest rate.There isn’t one that will compare the mortgage range of products from different providers. A calculator of this type is something that professional whole of market mortgage advisers or whole of market mortgage brokers will use when they research a mortgages for a client. They will be able to show the UK mortgages, compare lowest rates, the overall total lender costs, use the loan calculator to show the monthly payments. Highlight what each lender charges in arrangement fees per product, the survey fee and what the best is in each category.

What is the best mortgage insurance to have to cover my mortgage payments if I were to be made redundant?  Mortgage Payment Protection Insurance, also know as, redundancy and sickness insurance, mortgage redundancy insurance, income protection insurance redundancy, ASU, Accident, Sickness & Redundancy, not PPI, mortgage insurance redundancy. All the above are designed to provide income for your mortgage payments so you can concentrate on finding a new job.

How to buy a house? Where is the best place to start? Or how to get a mortgage. Knowing how much you can afford to buy for is the best place to start. This is broken down as the amount of deposit you have and the amount of mortgage loan you will need. Lenders all have affordability calculators or a mortgage payment calculator and they are all different, some lenders will lend more than others, effectively they decide if you can afford the mortgage, not you, they make the mortgage calculation. The next question is ‘Can I get a Mortgage’ this is where you’re past credit arrangements will have a bearing on any mortgage application. A lender will Credit Score you and will base their lending decision on upon what they see. Past indiscretions will be highlighted on the report. You can get a copy of your report and see for yourself what the lender sees, if there is anything on the report that could be a cause for concern, it will give you the opportunity of putting it right. Once you know how much home mortgage you can borrow and how much deposit you have you will know the price range of properties that you can start to view. For first time buyer mortgages there are inducements however you don’t have to have a FTB mortgage if you qualify for other products and the rates are better.

What is APR? It is a standard way of showing the costs of borrowing, so you can work out which option is the cheapest. The APR will vary from company to company and between products. The APR works best when comparing similar types of credit over similar periods. The APR includes important factors like – The interest rate you must pay; How you repay the loan such as the length of the loan agreement (or term), when you should make the repayments, and amount of each payment and certain fees associated with the loan.

How may mortgages can I have? You can have as many mortgage loans as you like on as many different properties as you want so long as you have the necessary income to support the loans, you can use a mortgage finance calculator to find this out. In theory you can have two mortgages on the same property from two different lenders although in practice it becomes very difficult as both lenders would want to take first charge on the property.

Are there any bad credit mortgages still available? It really depends upon how bad your credit rating is. If you have missed a couple of payments on your credit card their maybe lenders that will help you. If however you are in arrears with your current lending there’s a good chance the lender would say no. The best way to find mortgages you would qualify for is to get advice from a whole of market mortgage adviser

How to mortgage my own home to buy a property to rent out? You can raise the deposit you need by re mortgaging your own property so long as you have sufficient equity in your home. You can then take out a buy to let mortgage on the new property where the rent received will pay the mortgage payments. The lender will use an interest calculator when assessing the potential rent to make sure that there is sufficient to cover the buy to let mortgage payments.

I can’t sell my home, can I let it out? Yes you can so long as you get permission to let from your mortgage provider. You can also, subject to the amount of equity in your property, raise capital from your home by taking out a let to buy mortgage, or buy to let re mortgage, using this capital as the deposit on your new home and your income now supports a residential mortgage on the new home. The present home is then let out and the rent is used to support the new mortgage, Buy to Let or Let to Buy.

Who provides Buy to Let Mortgages? Only a very few of the high street lenders do them. You are better off taking advice from whole of market mortgage advisers as most of the mortgage companies that do offer these products will only deal with a mortgage intermediary or mortgage adviser. The adviser will be able to find the top mortgage deals available to you and using their mortgages calculator will calculate the amount of rent needed to support the mortgage.

What is a First Time Buyer?  Someone that has never owned a property before and been registered on the land registry as owning a property be it on a mortgage or owned unencumbered. A first time buyers mortgages is what it says it is, a mortgage first time buyer and can have inducements to help with the purchase, for example – lower lender fees, possible free valuation and cash back. These first time mortgage products are not available to you if you have bought before. Mortgages for first time buyers are more widely available now and offer more choice; the minimum deposit now needed is 10%.

Where can I compare Mortgages online? There are sites that will be able to show you a range of products that are currently available, listed as the types of mortgage products and showing mortgage interest rates. Unfortunately there is not a UK mortgage calculator that will show you all the charges and how this can effect what you pay overall or even if you would qualify for mortgage on offer. You can ask a mortgage adviser to do the same job for you as they have the software that shows the mortgage repayments calculator and which mortgages best product with comparisons of the whole of market and what all the lender costs will be. They will also explain the way and how a mortgage works, something that a comparison site cannot do.

What is best Fixed or Tracker interest rate? When deciding if you want a fixed interest rate mortgage or a tracker interest rates mortgage ( a variable interest rate) you need to decide for yourselves if you would want to see your home mortgage rate rise and fall or would you prefer knowing that the interest rate will not change irrespective of what the Bank of England do with the bank base rate. If you do not like the rates changing choose the fixed, if you don’t mind changes choose the tracker rate. Other types of variable rates available are – Discounted and Standard Variable Rate. Offset can be Variable or Fixed and Capped (when available) is a variable rate with a ceiling to the interest rate

Can you still get a 100% mortgage? No those days are long gone the lowest loan to value currently available, come to that there are no 95% mortgages available. The lowest loan to value is currently 90% although they do not offer the best interest rates.

Is there a mortgage for bad credit? I think I have poor credit score because of my past, is there such things as a bad credit mortgage or mortgage bad credit, would I still be able to get mortgage. It would be in your interest to get a copy of your credit report and talk to a mortgage advisor so that he/she can advise you what is on offer.

Who should I talk to? If your looking for Best Mortgage deals, Best Mortgage rates, Buy to Let mortgage rates, Best Remortgage deals, want to compare the mortgage deals best available, find out what mortgages rates are available and how mortgage calculator repayments are calculated, your best option is to seek professional advice from a Whole of Market adviser who would be able to give you independent advice and information.

What is LTV? Loan to value is the percentage calculation comparing the amount you are buying a property for and the amount of loan you want. For example, if you want to buy a property for £100000.00 and you require a mortgage of £90000.00 it will be a 90% Loan to Value or LTV, if you wanted a £75000.00 mortgage it would be 75% LTV.
The lower the Loan to Value the better the mortgage products will be available to you.




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