What information do I need to tell you to sort my mortgage?
• A description of what your objectives are – paint the picture for us
• Property value (roughly)
• Deposit amount
• Income and employment details
• Existing Credit Commitments (either register with Experian or Credit Karma UK – we will need the FULL credit report or else access to your account to view it
• General expenditure items – use our Expenditure Spreadsheet
What documents will you need to see?
• Proof of income – e.g. latest 3 months payslips or latest 3 years Tax Calculation & Tax Year Overview documents from HMRC if self-employed, ltd co director or contractor
• 3 months bank statements showing salary credit
• Proof of name – e.g. Passport
• Proof of address – e.g. Driving Licence or Council Tax bill
• Proof of deposit – e.g. Savings account statement
What is the mortgage process?
• Chat to us – we will take all your details and let you know if it is achievable
• Decision in Principle – we then apply for a DIP from the recommended lender
• Application & insurance quotes – Once you have found a property, we will complete your application with the lender and at the same time provide you with insurance quotes to protect your home, your life, and your income
• Valuation – after the bank have assessed your documents, they will instruct a valuation of the property
• Mortgage Offer – Once the valuation has come back and is ok, you should instruct your solicitor and we will make the applications for the insurances
• Exchange of Contracts – When the solicitor has done their ‘searches’ you will be ready to exchange contracts – this is the point of no return! Buildings insurance MUST be in place at this point
• Completion – Congrats! You are a new homeowner, or you have completed the remortgage and perhaps raised capital for home improvements or to reduce your debts!
What different types of valuation (survey) are there?
1- Basic Mortgage Valuation – This is a simple check of the property to find out how much it is worth and whether it is suitable to lend a mortgage on. This is carried out by a professional surveyor for the lender. You usually pay the bill and will usually, but not always, get a copy of the report.
2- Homebuyers Report – This is when a professional surveyor checks the structural state of the property. This is more detailed than a valuation but less detailed than a structural survey. The report is optional, and you pay the bill; but this report should pick up possible problems and may give you the chance to negotiate a lower price. And, you have more grounds to sue or get compensation from a surveyor for a poor report than you would from a simple valuation.
3- Full Structural Survey – this is the most wide-ranging check of the outside and inside of a property. This is carried out by a professional surveyor, and it should pick up all but the most hidden faults. The structural survey is optional, and you must pay the bill, but it provides the greatest protection for the potential buyer in terms of the information it provides. It also gives you cover against negligence by the surveyor.
How much can I borrow?
The amount you can borrow depends on your income, your debts, and your general expenditure. That is why we ask for that information when we speak to you. Generally speaking, the maximum is 5 times your single, or joint, salary. So, a couple on £25K each which total £50K could be able to borrow up to £250K. This is often lower though unless you have fairly decent income and very low debts. Some professions such as solicitors, accountants, and doctors can sometimes achieve over 5 times their salary, but this is notavailable to other job roles.
What if I have had bad debts in the past?
Do not worry! We have access to all types of lenders and many of them take a view on poor credit history. Even ex bankrupts can achieve mortgages they need. Just call us to chat but pull off your credit report first from Experian preferably before you make that call.
But isn’t it all a lot of hassle?
Not for you! We do all the hard work for you. It is extremely rare that a lender will ever even call you.
But I will not save much money?
You might. A lot of clients are sitting on the standard variable rate which can be more than double the best deals we can get for you. Plus, we bet you switch your energy supplier or your mobile phone contract every so often – this is no different.
I heard re-mortgaging was expensive?
Lots of lenders offer free valuations and free legal conveyancing on remortgages. Often the product fee the lender charges can also be added to the mortgage balance. So,it really can be an (almost) free service!
What are the different types of mortgages?
Most mortgages nowadays will be Capital & Interest Repayment. This means that you pay a little of the capital and a little of the interest off every month. And at the end of the term, you will owe the lender nothing and own the home outright! Interest only is normally only available for Buy to Let mortgages but if there is another asset in the background which you own, we can often get Interest Only deals for you too on your residential mortgage.
What are fixed Rates versus all the other types (Variable, Discounted, Tracker etc)?
If you like to live to a rough budget, like most of us, then a fixed rate is often the right choice. No matter what happens to the economy or interest rates, your mortgage interest rate will not change for the period you fix the rate. If you wanted to pay off your mortgage or sell the house during the fixed term, there may be Early Repayment Charges to pay. However, a lot of mortgages are Portable – that means you can move the mortgage to the next property – as long as you can still justify the mortgage borrowing amount with your income and credit history.
I have heard Offset is sometimes a good product?
Yes, we love Offset mortgages. They tend to be slightly higher interest rate than standard mortgages, but your savings are offset against the mortgage balance. So, in effect you are getting the same rate of interest on your savings as you are being charged on your mortgage. Plus, there is no tax to pay on offsetting those savings as no interest is put into your savings account. Instead it either reduces your balance quicker and means your mortgage it paid off quicker, or you can choose to have your monthly payments reduce to reflect the fact you have savings offsetting. Offset is particularly good if you have 20% of your mortgage balance in savings or if you are self employed and save money for your end of year tax bill.
What is a Buy to Let mortgage?
These are mortgages for properties which you do not intend to live in. They are for people looking to purchase a property to rent out. We specialise in helping you with these applications and you can purchase the property in your own name or in a limited company name which can benefit higher rate taxpayers. We do not give tax advice by the way, but we can recommend tax accountants!
What costs will I have to pay?
• Mortgage Broker fee (our normal fee is £495 unless someone has recommended us to you. Make sure to tell us who has, and we will apply a £100 discount!)
• Stamp duty (on purchases). There is no stamp duty for anyone to pay on residential mortgages up to £125K purchase price (or £300K for 1st time buyers). The amount you must pay in different parts of the UK is different. Give us a call to check or go to https://www.gov.uk/stamp-duty-land-tax
• Conveyancing Solicitor fees – budget for £400 to £700 (although it can be more) depending on the solicitor. We have good solicitor contacts who can give you competitive quotes. Often on remortgages we can get you free conveyancing!
• Search fees – the solicitor will ask you to pay local authority search fees and similar to ensure that the person you are buying the property from actually has the right to sell it in the first place
• Valuation fees – on purchases you will need to choose thee type of valuation. See our notes in this page on the different types. The lender will instruct the valuer / surveyor for you usually and you will pay the lender for the survey. On remortgages we usually can get a basic mortgage valuation done for you for free!
• Deposit – you will have to put down at least 5% of the purchase price regardless of the type of mortgage or type of property
What about Help to Buy and new build properties?
Great question! Help to Buy (HTB) is a scheme whereby the government ‘lend’ you some of the deposit. Yes, you will still have to put 5% down but the lenders can offer you interest rates based upon 25% deposit due to the 20% Help to Buy loan! You do not pay any interest on that government help until you have owned the property for 5 years. At that point you either start paying interest or we can sometimes remortgage your property, release equity and then you can use that to pay off the HTB loan! (HTB can be up to 40% of the purchase price in London!)
Always ensure the new build property has the relevant building certificates such as NHBC and negotiate extras if you can with the builder in terms of better spec finishes.
What is a Shared Ownership property?
Shared Ownership is great. It helps you to buy a percentage of the property. E.g. property is worth £200K and is out of your financial reach. But developer allows you to purchase 50% of it. So, you buy £100K worth of property and you pay a small bit of rent to the developer for the part you are not purchasing. This option gives people the chance to buy a property they could not afford normally. So instead of kids sharing bedrooms or having to buy a bigger property in an area you do not lie, you can often get the right size house, in the right area, with shared ownership.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. We may charge a fee for our service up to 0.75%. Our typical fee is £595 payable on application, subject to status. The Financial Conduct Authority does not regulate some forms of Buy to Let Mortgages.
Whole of Market Mortgage & Protection Experts – Currancy
Currancy is a trading style of John Curran (615343) who is an Appointed Representative of Ingard Financial Limited, First Floor, Maple House, Park West, Sealand Road, Chester CH1 4RN which is authorised and regulated by the Financial Conduct Authority (FCA), 12 Endeavour Square, Stratford, London, E20 1JN http://www.fca.org.uk. (450731). Our permitted business is recommending and advising on regulated mortgage contracts and regulated non-investment insurance contracts. You can check this on the Financial Services Register by visiting the FCA’s website http://www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 1116768
What to do if you have a complaint: If you wish to register a complaint, please contact us: In writing: Write to Ingard, First Floor, Maple House, Park West, Sealand Road, Chester CH1 4RN. By phone: Telephone 01702 533 400. By email: Info@ingard.co.uk
The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK
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