Why do I need an Agreement in principle (AIP):

This is a written statement from a lender showing how much they are prepared to lend to you. A decision in principle is a provisional acceptance of a mortgage prior to full application. This can be used as evidence to the seller that you are able to proceed with the purchase.

What is an Arrangement fee and should I pay one :

This is a written statement from a lender showing how much they are prepared to lend to you. A decision in principle is a provisional acceptance of a mortgage prior to full application. This can be used as evidence to the seller that you are able to proceed with the purchase.

I’m in arrears with my mortgage, can I get a new deal:

There may be a solution, speak to an adviser and let them review your options. Don’t ignore your situation, you risk losing your home.

What is the Base rate and how does this affect me:

This is the interest rate set by the Bank of England (BOE) and some mortgages are based on it. Tracker mortgages, for example, are set at a certain percentage above the base rate.  Once a month the BOE Monetary Committee meet to decide whether to hold, increase or decrease the BOE Base Rate.

What is a Broker and what can they do for me:

An adviser who can help you arrange a mortgage. Typically, Brokers have a comprehensive panel of lenders and have access to exclusive products to ensure they can recommend the most suitable mortgage deal saving you time and money.

Should I have a Building Survey:

The last of the three basic types of house survey.  It is an in-depth look at the property’s condition, with advice on defects, repairs and how to maintain the property.  A Building Survey is not a valuation of the property and therefore would need to be carried out in addition to the Condition Report/Basic Survey for mortgage purposes.

What is a Buy to Let:

A property that is bought with the sole intention of letting it to tenants.  Most lenders offer special buy to let mortgage deals for this purpose.

Capped Rate:

This is a mortgage deal where the interest rate charged by the lender will never exceed the upper “capped” limit, regardless of increases to the Bank of England Base Rate.

Cashback mortgage:

With this type of mortgage, the lender offers a certain amount of cash on completion.  The cash is paid to your solicitor.  You should factor in any cashback when comparing the total cost of the mortgage over the initial mortgage period.

Can I get a mortgage with a CCJ (County Court Judgement):

This is made against you for non-payment of debt and could make it harder for you to obtain a mortgage. There are many lenders that will consider your circumstances, speak to an adviser and let them review your options.

How long does my mortgage take to Complete:

How long is a piece of string! The point at which the property purchase has been made can vary dramatically on each individual circumstance. A typical purchase takes around 6-8 weeks, our case managers actively push your mortgage to make this as short as possible.

Condition Report:

The first of the three basic types of house survey.  It covers the property’s condition, including any risks, potential legal issues and major defects. Also referred to for mortgage purposes as a basic valuation.  Its purpose is to assure the lender that the property is worth the price paid and is suitable security for the mortgage.

What is Conveyancing:

The legal process involved in buying or selling your property.

I have a bad Credit score, can I get a mortgage:

Every borrower has a credit score. Lenders will look at your score to determine whether they will accept your mortgage application. The better your credit score, the more likely you are to be accepted. We work with mainstream and specialist lenders to ensure the best chance of obtaining a mortgage.

What is Critical Illness Cover (CIC):

Usually added onto a life insurance policy. If diagnosed with one of the defined serious illnesses specified by your insurer during the policy term, the insurer will pay a set amount to help support you and your family.

I have Death in Service but what is it:

Often offered by employers. The policy will usually pay out a multiple of your salary to your chosen beneficiary if you die whilst employed.

Why do I need a Decision in Principle (DIP):

This is a written statement from a lender showing how much they are prepared to lend to you. A decision in principle is a provisional acceptance of a mortgage prior to full application. This can be used as evidence to the seller that you are able to proceed with the purchase.

What are disbursements:

These are expenses that are paid on the buyer’s behalf by a solicitor or conveyancer.

Discounted mortgage:

This is a variable rate mortgage which offers a discount off another interest rate, such as the Standard Variable Rate. For example, if the SVR is 5% and the discounted rate is 1% below the SVR, you would pay 4%.

What is an Early Repayment Charge (ERC):

If during the initial rate period of your mortgage you should repay your mortgage in full or exceed the pre-agreed overpayment facility.  The ERC is a penalty fee you may have to pay to the lender.

What is an Endowment:

A type of investment that you pay into, for the purpose of receiving a lump sum that can be used to repay the capital left owing on an interest only mortgage.

Do I need an Energy Performance Certificate (EPC):

If you’re selling or renting a property, you’ll need to have a valid EPC as it tells potential buyers how energy efficient your home is and what can be done to improve it.

What is a Family offset mortgage:

Used by family members (typically parents) who wish to help other family members (typically children) buying a home for the first time. Savings are balanced against the mortgage debt so that the amount they owe and pay interest on is reduced.  These savings may also remove the need of a further cash deposit by the buyer.

What is a Fixed rate mortgage:

This is a mortgage which offers a fixed rate of interest for a number of years – typically two, three or five.

What is a Full structural survey:

This survey offers a comprehensive breakdown of the structure and condition of the property. It is a good option if the property you are buying is particularly old or unusual in structure.

Do Guarantor mortgages still exist and what are they:

Someone who guarantees to meet the mortgage sum if the borrower cannot meet their repayments. These are not as common as they once were however, there may be alternative options, speak to an adviser and see what is available.

What is Help to Buy and am I eligible:

A Government scheme designed to make homebuying easier.  For further details visit https://www.helptobuy.gov.uk/

What is a Homebuyer’s report:

The second of the three basic types of house survey and the most popular with buyers. This survey highlights problems such as damp, dry rot and subsidence and offers advice on what can be done to resolve those problems. It is a good option for modern properties or buildings in reasonable condition.

Can I get an Interest-only mortgage:

With this type of mortgage, you only pay the interest on your mortgage during the term of the loan, and not the capital. The final mortgage balance must be repaid in full at the end of the term. Interest only mortgages are available however it’s important to understand how the mortgage will be repaid.

What is a Joint Mortgage, Sole Proprietor:

A mortgage taken out by two or more people but, only one party is named the legal owner at the HM Land Registry.

My property is Leasehold, can I get a mortgage:

This means you have the right to live in a property for a set number of years but do not own the land. Flats are typically leasehold. It’s not uncommon for houses to be leasehold, your conveyancer will review the terms.

What is LIBOR:

The London Inter-Bank Offered Rate is effectively the rate that banks lend to each other.

Loan to Value (LTV), is this important:

The proportion of the property price you borrow by way of a mortgage. If you borrow £75,000 on a property worth £100,000, the LTV would be 75%. The bigger the deposit, the lower the risk to the bank which usually results in lower interest rate.

What is a Mortgage Deed:

The legal document which formalises the mortgage agreement.

Why do I need a Mortgage in Principle:

A mortgage in principle is a written statement from a lender showing how much they are prepared to lend to you, subject to approval of the property. A mortgage in principle is a provisional acceptance of a mortgage prior to full application.  This can be used as evidence to the seller that you are able to proceed with the purchase.

How long does my Mortgage offer last:

Once the mortgage lender has processed your mortgage application and if satisfied, they will issue a mortgage offer to confirm that the mortgage loan has been approved. Both you and your solicitor or conveyancer will receive a copy, they are usually valid for 3-6 months.

How long can I have my Mortgage term:

A typical mortgage used to be 25 years, these days are long gone, some lenders will allow up to 40 years.

Do I need a Mortgage valuation:

Generally yes, this is the most basic survey carried out by your lender to check the property is adequate security for the loan.

What is an Offset mortgage:

A type of mortgage which allows you to ‘offset’ your savings against your mortgage debt. If you had a mortgage of £150,000 and savings of £50,000, you would only pay interest on £100,000 of the mortgage. You can then either pay off your mortgage early or reduce your monthly repayments.

Can I make Overpayments:

Many lenders allow you to make overpayments of up to 10% of the outstanding mortgage debt each year, penalty-free. Overpayments will reduce your mortgage term if you repay your mortgage loan on a capital & repayment basis.  Overpayments will reduce your monthly mortgage payments if you repay your mortgage loan on an interest only basis.

What is Peppercorn ground rent:

When the ground rent is a very small amount it is known as a peppercorn ground rent. The freeholder usually does not collect the money, meaning there is effectively no ground rent to pay.

Can I Port my mortgage:

If you are moving home and want to keep your existing mortgage, many lenders allow you to ‘port’ it across. In most cases lenders will allow a broker to do this for them.

Re-mortgaging:

This is when you arrange a new mortgage on your existing home.

What is a Repayment mortgage:

With this type of mortgage, you pay off both the interest and a portion of the capital debt.  Subject to maintaining repayments on the mortgage by the end of the term, you will no longer owe anything to your lender.  This is the safest way to ensure your mortgage is repaid in full at the end of the mortgage term.

Do I need a Repayment Vehicle:

If you take an interest only mortgage, this is the means by which you are intending to pay off the mortgage at the end of the term i.e. endowment.

What are Searches and why do I need them:

Searches are carried out by your conveyancer when you are buying a property. There are three main types: local authority, water drainage and environmental.

Can I get a Shared ownership mortgage:

These schemes are offered by housing associations and allow you to part-buy and part-rent your home. There are many different schemes, we would recommend speaking to an adviser to see if you qualify.

What is Stamp Duty:

Tax you must pay when you purchase a property. It is charged as a percentage of the purchase price and rates are tiered.

I’m on Standard Variable Rate (SVR), am I paying too much:

The variable rate a mortgage reverts to once the introductory fixed or tracker rate period ends. Because it is usually more expensive, you should always switch to a better deal.

What are Title deeds:

These are paper (or digital) documents that show the ownership history of property and land. They can include contracts for sale, mortgages, conveyances, leases, and many other things relating to the property.

What is a Tracker mortgage:

A variable rate mortgage which typically tracks the Bank of England base rate. Your monthly repayments will change when the base rate moves up or down.

Should I get a Trust:

Your life insurance sum is part of your estate, including your house, savings, and other assets.  On death your estate maybe subject to inheritance tax.  A Trust can help you avoid inheritance tax and bypass probate in certain cases.

What is a Vendor:

This is another name for the person or people selling a property.

Can I get a mortgage without a job:

In short yes, you don’t have to have started a job or be outside probation period to get a mortgage, many lenders will offer a mortgage to someone who has an offer of employment. This offer of employment would typically need to start within the next 3 months.

Do I need 6 months payslips:

Whilst some lenders require you to have been in a job for 6 months there are plenty that only require you to have started and even some that will lend using an offer of employment.

I’m still in my probationary period, can I get a mortgage:

Yes, many lenders will consider an application even if you are within your probationary period.

My deposit is coming from a gift, can I get a mortgage:

Where the deposit is coming from a family member this is generally okay however, if the funds are being gifted by a friend or employer it can cause an issue with some lenders.

Joint borrower sole proprietor:

This allows multiple people to buy a property, but not all are required to go on the deeds. For example, this could be parents who wish to help their children on the property ladder.

Can I buy my parents house:

This is referred to as a concessionary purchase, if the deposit is being purchased below market value you can often purchase it without a deposit.

Shared Ownership:

This is when you own part of the house and pay rent for the other part, this can often be bought without a deposit.

I don’t have a deposit, can I use a personal loan instead:

Although less conventional there may be lenders that will consider it this.

I’m a CIS worker can I get a mortgage:

Yes, lenders will assess this in very different ways, the length of time you have been doing this type of work is a big factor.

I have a Debt Management Plan (DMP) can I get a normal mortgage:

This is all about the length of time you’ve had the DMP, each lender has different criteria, some are more favourable than others.