Mortgage Questions FAQ
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Do I need a deposit?
The minimum requirement for most lenders is a 10% deposit, interest rates are still quite high with this amount as the risk to the lender is greater so the bigger deposit you have the less you will be paying.
There is one lender who will allow you to use a 5% deposit from the seller so you will only have to find 5% deposit yourself.
I am thinking of moving what do I do first?
We would always recommend that before you are thinking of putting your property up for sale come in and see us for an appointment, we will go through all of the fees that are associated with a sale such as estate agents, solicitors, stamp duty etc.. and make sure that the new mortgage will remain affordable.
How long will an appointment take?
Allow an hour for your initial appointment.
What do I need to bring to an appointment?
If you are employed you will require your latest 3 months pay slips
and latest P60. If you are Self employed you will require last 3 years accounts
Other documents:
- Latest 3 months bank statements showing salary credits
- Passport or Driving Licence
- Latest Council tax bill or utility bill dated within the last 3 months
- If you have had any adverse credit history obtain your credit file from www.creditexpet.com
Can I apply for a mortgage if I am still in my probationary period at work?
Yes there are a few lenders that will lend whilst you are in your probationary period.
What income can I use to get a mortgage?
- Employed and Self Employed Income
- Maintenance payments
- Child Benefit
- Child and working tax credits
- Pension income
- Rental income that is declared on a tax return
Is life insurance compulsory when I take out a mortgage?
It is not compulsory however it is important to protect yourself and your family, we advise you on the insurances we feel should adequately cover you and that is affordable.
Should I take out mortgage payment protection insurance?
Mortgage payment protection insurance will cover you usually for a period of 12 months and can cover you for accident, sickness and unemployment or a combination of these, it is recommended but not compulsory.
Mortgage payment protection insurance has to be taken out within 30 days of taking out a new mortgage, remortgaging or taking a further advance.
How long does it take to get a mortgage offer?
From the date the mortgage application is submitted we aim for you to receive your mortgage offer within 3 weeks, it is often sooner than this.
Will I get a better deal if I go direct to my own bank?
As independent whole of market mortgage brokers we use the majority of high street banks, some banks will offer better deals to brokers and some better deals direct, we are more than happy to compare deals that you find direct.
I am buying direct from the vendor (not using an Estate Agent), will this matter?
No private sales are acceptable.
Can you find a solicitor for me?
We work closely with a number of highly recommended solicitors that we can put you in touch with.
If I am on SVR, is it better to get a new deal?
We will review your existing mortgage deal and if we are able to save you money we can switch your mortgage.
My current deal has redemption penalties, does this mean I cannot get a new deal?
You will incur the early redemption penalties if you want to switch your deal but this may work out more cost effective, if you are moving home and have redemption penalties then we will always look to port (move) your mortgage first to save these.
Do I need a Decision in Principle (DIP) before I start looking at houses?
During your first appointment we will discuss your situation and if we feel that the mortgage will pass credit score then a DIP is not necessary, the most competitive lender will change on a daily basis so the DIP would be a waste of a credit check.
How many credit checks can I do before affecting my credit history?
We do not recommend more than 4 in a 6 months period and that includes all types of credit, that is why we resist doing the DIP until you are ready to proceed.
I have had adverse credit will this stop me from getting a mortgage?
There are some lenders who will accept adverse credit, we would always advise you to obtain your credit report from www.creditexpert.co.uk and bring this to your appointment so we can discuss this in more detail.
I am splitting with a partner can I take them off the mortgage?
If the mortgage is affordable and fits with the lenders criteria then you can do a transfer of equity which will transfer the property into sole names or into the name of another person.
t: 01869 248339 | f: 0871 7146752 | michelle@imsinternet.co.uk