How much can I borrow?
The main things that dictate how much a person or couple can borrow is income and current credit commitments. All lenders have different ways to calculate what someone can borrow.
How much deposit do I need?
You will need a minimum of 5% deposit. The more deposit you put in, the better the interest rates will be. For example, if you put in 15% deposit this will get you a better interest rate than a 10% deposit.
How much will a mortgage cost each month?
This will vary depending on the loan amount, the term of the mortgage and the interest rate.
What is the difference between a repayment mortgage and an interest only mortgage?
A repayment mortgage is guaranteed to pay off your mortgage by the end of the term as long as all payments have been made.
An interest only mortgage is where your monthly payments are only covering the cost of the interest and your loan amount will remain the same. At the end of the term, you would either need to sell the property to repay the mortgage or find another source to repay the loan.
What insurance do I need for a mortgage?
As a minimum, the building itself needs to be insured. We would usually recommend that you also insure the contents within your home too. Other insurances we recommend are life insurance and income protection insurance, all of which are quoted from across the whole of the market.
Can I move my mortgage to another lender if they are offering a better interest rate?
Yes. You can “remortgage” to another lender to take advantage of their better interest rates. As part of our service we will contact you as you approach the final few months of your existing mortgage deal to provide you with details of the options available to you.
What costs are there when buying a property?
There are various costs associated with buying a property which we’ve detailed below:
Stamp Duty Land Tax (SDLT): currently first time buyers are not required to pay SDLT. Current percentages payable can be found at https://www.gov.uk/stamp-duty-land-tax
Solicitor’s fees: These are based on the purchase price. Typically, First Time Buyers will pay £500-£1000.
Valuation fees: For most lenders these are also based on purchase price. Many lenders offer free valuations, especially for first time buyers and remortgages.
Lenders arrangement fees: These can usually be either added to the mortgage or paid up front and average at about £999.00.
Mortgage broker fees: We charge competitive broker fees to our clients. Existing clients get a significant reduction. We also offer a price-match guarantee – if you can find a broker fee elsewhere that is cheaper, then we will match it.
Can I pay my mortgage off early?
Yes, however you could have early repayment charges to pay if you have only had your mortgage product for a short amount of time.
Can I make overpayments on my mortgage to pay it off sooner?
Yes, most lenders allow up to 10% of the mortgage balance to be overpaid each year without incurring any penalties.
What is a Buy-to-Let mortgage?
A Buy-to-Let mortgage is where you buy anther property specifically as an investment with the intention of letting it out.
How much deposit do I need for a Buy-to-Let mortgage?
Normally a minimum of 25% deposit.
Is there any tax to pay when I sell my property?
Not for your main residence, but if you have investment properties that were bought on a Buy-to-Let basis, these will be subject to Capital Gains Tax.
What is a credit score?
This is a score that we all have and is based on how we have conducted our finances over the preceding six years and is used by Financial Services companies to assess our credit worthiness.
How can I improve my credit score?
You can improve your score by proving that you can repay debt and cope with any credit commitment you have, such as loans and credit cards and by paying things like mobile phone bills and utility bills on time. Also, it helps to be on the electoral role.
How do I find out the maximum mortgage that I can get?
Contact us at Money Matters for a free no obligation assessment.