knowledge
Getting a mortgage
Looking to buy or refinance a home?
Knowing the ins and outs of mortgage products and their options can help save you thousands of pounds.
Here’s our collection of helpful articles to get you going. Welcome to the ultimate hub for all things related to getting a mortgage!
Find a mortgage broker
Working with a mortgage broker can be a great way to explore a wide range of mortgage options. A broker knows the mortgage market inside and out, so they can do the research for you to find lenders and products that suit your needs.
A broker can provide tailored advice on how long to fix your rate for, how much deposit you need, and more – all while helping you compare rates from different lenders. They also have access to exclusive deals which are not available through banks or other lenders, so can often get you the best deal possible.
The best thing about working with an experienced adviser is that they’re able to shop around for you, finding the most suitable lender and product that meets your requirements while keeping in mind affordability and repayment terms. With their help, you’ll be prepared to make an informed decision on the right mortgage for you.
CLICK THE BUTTON
To find a mortgage broker to help you.
If you are looking to get a mortgage then the following articles are just for you.
These articles and guides offer helpful mortgage tips for understanding the UK mortgage market. They won’t cover every eventuality, but hopefully will provide you with enough info to complete your mortgage journey.
How to get a mortgage with no deposit
Affordability can be a huge barrier to getting onto the housing ladder. If you are struggling to save up the 5% deposit that most lenders ask for, then perhaps a no deposit mortgage could be an option. You won’t need a cash deposit yourself, but you will need help from a family member. Read on …
How to get a mortgage with a high deposit
Higher mortgage deposits start at around 25% of the property value. But does having a bigger deposit mean you will get a better deal? Do you still need to provide loads of paperwork and information? Having a high deposit will certainly give you access to some better rates and make you more attractive to lenders. …
How to get a mortgage with a low deposit
If you are saving up to buy a house you will know that getting on to the property ladder is not easy. One of the main challenges is getting a deposit together. In these situations a low deposit mortgage may be worth considering. It allows you to buy a home with a smaller deposit, so …
The Mortgage Guarantee Scheme Explained
If you’re dreaming of moving home but find the idea of saving for a large deposit overwhelming, this scheme might be a perfect fit for you. In this guide we walk you through the Mortgage Guarantee Scheme, explain how it works, and discuss who can benefit from it. Whether you’re buying your first home or …
What is a family deposit mortgage?
Buying a home in the UK can be tough these days. With house prices going up and living costs getting higher, saving enough money for a regular mortgage deposit is really hard for a lot of people. That’s where family deposit mortgages come in as a helpful option. They’re getting more popular because they make …
What’s the longest mortgage term you can get?
Choosing the right mortgage term is a big part of buying a home. It affects how much you pay every month and the total cost over time. Recently, there’s been a change in the UK, with longer mortgage terms becoming more common. This article looks at the longest mortgage term you can get. We’ll explain …
What is a gifted deposit?
Saving a deposit for a home is an enormous challenge for any would-be first time buyer. UK house prices keep rising, and so deposit levels have to increase to keep up. It’s no surprise then that gifted deposits are a common occurrence when buying a home for the first time. Keep reading to find out …
What is a family offset mortgage?
If you are looking to buy a home but don’t have enough deposit yet, then a family offset mortgage could help you out. These are popular with first-time buyers, but available to anyone moving house. A family offset mortgage, or parent offset mortgage, works by linking your new mortgage with savings from family members. Our …
What happens if your mortgage offer is withdrawn?
Reasons for withdrawing an offer It’s important to understand that there are various factors that could lead a lender to reconsider or withdraw a mortgage offer. One such situation arises when a lender decides to re-evaluate your personal circumstances. This reassessment involves taking a fresh look at your financial situation before finalising the release of …
Can you get a mortgage with credit card debt?
How do lenders view debt? Any form of debt, including credit cards, will show on your credit file and be analysed by lenders. They will want to build up a picture of what debts you have (including the type), how much you owe and how well you make your repayments. It’s not true that any …
What to do if your mortgage is declined
Some common reasons Let’s take a look at some of the more common reasons why mortgages are declined Don’t reapply straight away! Now, whether you found out why your application was declined, or not, it’s important not rush and reapply straight away. Making lots of mortgage applications close together will lower your credit score, incur …
What is a mortgage retention?
So you are trying to buy a property but the lender has slapped a ‘mortgage retention’ condition on the mortgage offer. Because of this they can’t give you the full mortgage straight away.. The good news is that you do have options, and a mortgage retention needn’t stop you from going ahead. This guide will …
What is a debt to income ratio?
Before we can do the calculation, we need to work out your debt repayments and your monthly income You should now have two figures Total debt payments Total income payments How can a broker help?
Can you get a mortgage if you have a loan?
Understanding Personal Loans and Mortgages Let’s start by clarifying the difference between a personal loan and a mortgage. Debt-to-Income Ratio (DTI) Are You Struggling with Unaffordable Debt? If you find yourself in a situation of unaffordable debt, it’s important to seek help. Dealing with overwhelming debt can impact your financial stability and mortgage eligibility. Remember …
Mortgages for over 50s
Which type of mortgage is best when you are over 50? When it comes to finding the best mortgage for you as someone over 50, it’s important to consider your individual circumstances and your level of risk. With interest rates showing an upward trend, you might lean towards a fixed-rate mortgage to provide protection. By …
Mortgages for over 60s
What is the maximum age limit for obtaining a mortgage? The maximum age limit for obtaining a mortgage will vary depending on the lender and the type of mortgage product. While some lenders have specific upper age limits, others are more flexible and consider each application on a case-by-case basis. Lenders used to set an …
Mortgages for over 70s
What is the maximum age limit for obtaining a mortgage? The maximum age limit for obtaining a mortgage will vary between lenders and the type of mortgage product. While some lenders have specific upper age limits, others are more flexible and consider each application on a case-by-case basis. Traditionally, many lenders used to set an …
Can you get a mortgage on a zero-hour contract?
Understanding Zero-Hour Contracts Before we go into the nitty-gritty of mortgages, let’s first understand what a zero-hour contract is. A zero-hour contract, as the name suggests, is an employment contract that doesn’t guarantee a minimum number of work hours. You could be working 40 hours one week and zero the next. It’s a flexible arrangement …
How to get mortgage ready
What does mortgage ready mean? Being mortgage ready is more than just deciding to buy a house and get a mortgage. It’s about sorting your finances and getting organised so that you stand the best possible chance of being approved. Being short on time, and without some of the required documents, makes the whole process …
How does the Bank of England base rate affect mortgages?
How is the Bank of England Base Rate set? The Bank of England sets the Base Rate based on a range of economic factors, including inflation, economic growth, and unemployment. The Monetary Policy Committee (MPC) is made up of nine members – the Governor, the three Deputy Governors for Monetary Policy, Financial Stability and Markets …
Does an overdraft affect a mortgage application?
How overdrafts can affect your mortgage application When you apply for a mortgage, lenders look at various factors to assess your financial stability and ability to repay the loan. One of these factors is how you manage your bank account and whether or not you go overdrawn. Here’s how it can influence your mortgage application: …
Who organises a survey when buying a house?
The importance of a home survey Before we go into who organises a home survey, let’s first understand what a home survey is and why it’s so important. A home survey is a detailed inspection of a property’s condition. It’s conducted by a qualified surveyor who checks for potential issues such as structural problems, damp, …
Does having a car on finance affect your mortgage?
Understanding Car Finance Before we go into the impact of car finance on mortgages, let’s first understand what car finance entails. Car finance is a broad term that encompasses several ways of funding a car without paying the full amount upfront. Instead, the cost is spread over a set period, making it more manageable. Here …
Can you get a mortgage using retained profits?
Quick example Understanding retained profits is essential because they provide an insight into a company’s financial health, showing how much resource it has to reinvest in growth or to weather future financial challenges. Let’s assume you own a limited company. This year, your company has generated a net profit of £200,000 after all operating expenses, …
Does a student loan affect your mortgage?
Are you worried about how your student loan will affect your chances of getting a mortgage? With an increase in university fees, many graduates start work with hefty student loans. At some point you may then want to get on the property ladder. In this article we run through exactly how student loans are assessed …
How much do you need to earn for a £750,000 mortgage?
Mortgage affordability factors Income: First and foremost, lenders look at your gross annual income. Using an income multiple approach, they first calculate your maximum borrowing capacity. Typically, lenders will lend up to 4.5 times your gross annual income, meaning you would need to earn around £167,000 per year to be eligible for a £750,000 mortgage. …
How much do you need to earn for a £600,000 mortgage?
In the case of a £600,000 mortgage, you would therefore need to earn at least £150,000 per year to qualify. Factors affecting mortgage affordability Income Lenders initially use income multiples to calculate your maximum borrowing capacity. This approach involves multiplying your gross annual income by a set number to determine the amount you can borrow. …
How much do you need to earn for a £500,000 mortgage?
Factors affecting mortgage affordability There are several factors that affect mortgage affordability, including income, credit history, debt-to-income ratio, loan-to-value ratio, interest rates, term of the loan, and repayment method. Income: Lenders typically use the income multiple approach to calculate maximum borrowing capacity. This involves multiplying the borrower’s gross annual income by a certain number, which …
How much do you need to earn for a £400,000 mortgage?
Factors affecting mortgage affordability Several factors can impact your ability to afford a mortgage, including income, credit history, debt-to-income ratio, loan-to-value ratio, interest rates, term of the loan, and repayment method. Let’s explore each of these factors in detail: Income: Lenders use the income multiple approach to calculate maximum borrowing capacity, which means the amount …
How much do you need to earn for a £300,000 mortgage?
Factors Affecting Mortgage Affordability There are several factors that affect how much you can borrow for a mortgage. Here are the key ones: Income: Lenders use the income multiple approach to calculate maximum borrowing capacity. This approach uses a multiple of your gross annual income to determine how much you can borrow. Typically, lenders will …
How much do you need to earn for a £200,000 mortgage?
Factors affecting mortgage affordability Additional costs to consider Tips to improve mortgage affordability Improving credit profile: Improving your credit status can increase your chances of getting a mortgage. Some tips to improve your credit profile include paying bills on time, avoiding unnecessary credit applications, and ensuring that you keep within your limits. Reducing debt: Reducing …
How much do you need to earn for a £150,000 mortgage?
Factors Affecting Mortgage Affordability Income is a significant factor that affects how much you can borrow for a mortgage. Lenders use the income multiple approach to calculate your maximum borrowing capacity. Typically, lenders will allow you to borrow up to 4.5 times your gross annual income. This means that to qualify for a £150,000 mortgage, …
How much do you need to earn for a £250,000 mortgage?
Factors Affecting Mortgage Affordability Income: The most significant factor in mortgage affordability is your income. Lenders typically use the income multiple approach to calculate the maximum amount that you can borrow. For example, if a lender uses an income multiple of four, you could potentially borrow up to four times your gross annual income. This …
Is a mortgage illustration the same as a mortgage offer?
In the ever-changing world of property finance, understanding mortgages can be a daunting task for anyone, whether you’re a first-time buyer or a seasoned homeowner. With a plethora of terms, acronyms and documents to wrap your head around, it’s no wonder people often feel overwhelmed by the process. One common source of confusion is the …
Can I keep my tracker mortgage if I move house?
Tracker mortgages have been popular with borrowers for years, thanks to their competitive interest rates that move in line with the Bank of England’s base rate. However, if you’re thinking of moving to a new property, you might be wondering whether you’ll be able to keep your existing tracker mortgage, or whether you’ll need to …
Why do mortgage companies need bank statements?
Are you looking to apply for a mortgage and wondering why lenders require your bank statements as part of the application process? Taking out a mortgage is one of the biggest financial decisions you will ever make in your life, so it’s important to understand all aspects involved. In this article we’ll cover exactly why …
Can I move my mortgage to another house?
Are you a UK homeowner looking to move house and want to know whether you can take your mortgage with you? Have you ever wondered if it’s possible to switch your existing mortgage over to the new property or if using a broker is necessary for the process? The short answer is yes, it is …
What is a mortgage stress test?
What is a mortgage stress test? The purpose of a stress test is to see how well you would be able to afford your mortgage if the Bank of England interest rates went up. It formed part of the lender’s affordability checks. Although most mortgage applications were for fixed interest rates, where the monthly cost …
How long does a mortgage offer last?
We explain what a mortgage offer is, how to get one and how long it is valid for. How long does a mortgage offer last? Let’s find out…
Do you need a survey to get a mortgage?
What is a survey & are they compulsory when applying for a mortgage? We answer this question and more including what is a mortgage valuation?
Do you need life insurance to get a mortgage?
When you’re looking to buy a home, you need to decide whether or not to take out life cover. But do you need life insurance to get a mortgage?
Should you get a 30 year mortgage term?
Half of all first time buyers are now choosing a mortgage term of 30 years, or more. This article looks at why this is helpful plus the pros & cons.
15 questions commonly asked by first-time buyers
Are you considering buying your first home? If so, you’re likely wondering where to start and what to expect. Here are 15 questions commonly asked by first-time buyers to help get you started.
What to consider before making an offer on a house?
Before making an offer on a UK property, there are a few things you need to consider to get you prepared. When viewing properties, prepare a list of questions to ask the estate agent to get as much information as possible.
How does a Joint Borrower Sole Proprietor Mortgage work?
A Joint Borrower Sole Proprietor Mortgage (otherwise referred to as a JBSP mortgage) is a type of home loan that allows two people to borrow money together while only one of them is named on the mortgage.
Mortgage underwriting explained
Applying for a mortgage can be hard work and for some people quite stressful. Mortgage underwriting is an essential part of the mortgage process but this situation won’t be helped when you are told “your application is still with the underwriters“ or “we are waiting for the underwriter to approve it“. What is a mortgage …
11 steps to buying your first home
When you’re buying your first home, there is so much to think about. The process can fill you with a mixture of both nerves and excitement. From getting together a deposit to investigating the different types of mortgage, and, of course, what kind of property should you buy, it’s decisions, decisions. And that’s before you’ve …
First-time buyer mortgage tips
Feeling daunted by the prospect of buying your first home? BUYING YOUR FIRST home is an expensive business and, for most of us, is the single biggest transaction of our lives. It’s easy to see why some people can feel overwhelmed by the entire process. To help you get your first foot on the property …
What size mortgage could I afford to borrow?
WHEN YOU APPLY for a mortgage, the lender’s decision on how much you can afford to borrow can seem like a mysterious one. But there’s no magic or secret behind the outcome, just a simple affordability formula. Here are the factors the mortgage lender will consider. YOUR INCOME In the past, your income was the …
What is a mortgage Decision in Principle?
If you’re starting the process of buying a house, you may have come across the term Decision in Principle or DIP for short. A Decision in Principle is provided by a specific mortgage lender and indicates how much they could lend you. It’s a useful document to have when you’re house hunting and deciding what’s …
Can you afford to help bankroll your children’s property purchase?
THE ‘BANK OF MUM AND DAD’ isn’t a new phenomenon, but research shows gifting has been on the rise. One in every two first-time buyers (56%) aged under 35 received financial support from the Bank of Mum and Dad to help them step on the housing ladder, according to research[1]. Nearly three-quarters (71%) of these …
Taking your first step on the property ladder
ARE YOU LOOKING to buy your first home? Whether you’re a young professional or simply planning for the future and trying to be smart with your money, purchasing a home is one of the biggest financial decisions you’ll ever make. The journey of purchasing a property is not always easy and hurdles can crop up …
Improve your chances of first-time buyer mortgage success
IF YOU ARE PLANNING to buy your first property, one of the initial steps is to apply for a mortgage. This process requires an assessment of your creditworthiness by lenders. When they carry out their assessment, it will include an evaluation of your credit report which details all the information on how you have managed …
A practical guide for choosing the right mortgage
Should you choose a fixed, tracker or variable rate mortgage? WHETHER IT’S YOUR first home or the next rung on the property ladder, one of the most important things you’ll need to consider is the type of mortgage that’s right for you. Choosing the right mortgage can make a big difference to the repayments you …
