We do our best to educate and inform all of our valued customers. Below are the most commonly asked questions which should give you a brief overview into our different sectors. If you are still unsure about anything, please call us on 0800 566 8540.
Simply browse through the different categories below and click a question to view the answer.
Mortgages
1. How much can I borrow?
2. How do I know if I can afford a mortgage?
3. How much do I need to allow for moving costs?
4. What mortgage is best for me?
5. What is conveyancing?
6. How do I prove my income?
6. What documents will I need to apply for a mortgage?
1. How much can I borrow?
The amount lenders will loan you will vary greatly and gone are the days where the lender will lend you say 3.5 times your annual salary. Most work with affordability calculators, which consider your outgoings, the size of your family and of course your income. You can still use 3.5 times your salary of 3 times joint salary as a guide. Our mortgage advisers will be able to tell you accurately how much you can borrow.
The size of your deposit is also important, the bigger the deposit the better the rate offered and even the higher the loan. You will more than likely need a deposit of at least 10%.Home Buy schemes help first time buyers who have no deposit.
2. How do I know if I can afford a mortgage?
You need to sit down and draw up a detailed monthly budget of all your income and expenditure. This will show you what you have left to pay for your mortgage repayments. The last thing you want to do is take on more than you can afford.
Also consider the effects of any future mortgage rate increases. You will also need to consider the additional cost of insurance such as home insurance, life cover and redundancy cover. Valuable protection, but at an additional cost.
Why not check out our online affordability calculator, click here.
3. How much do I need to allow for moving costs?
There are a lot of fees and costs associated with moving house, including legal fees, valuation fees, estate agent fees and more! We have compiled a list of all the costs you need to factor in when moving, click here to read the article.
4. What mortgage is best for me?
There are so many different mortgage types and companies out there, how do you know which one is the best for you? Don't worry as we're on hand to help. Why not call us on 0800 566 8540 and talk to one of our friendly advisors.
The BBC website also has a great article which explains all of your options - article.
We have setup a "best buy" table with all of the different mortgages available which we update on a regular basis - take a look here.
5. What is conveyancing?
Conveyancing is the legal and administritive work involved when it comes to buying and selling a house. This work is usually carried out by a solictor or a licenced conveyancer. The conveyancing process starts after an offer has been made and accepted to buy a property and solicitors' details exchanged by the two parties.
6. How do I prove my income?
If you're employed then the lender will ask for written evidence, normally a payslip or P60. They will also write to your employer asking for confirmation of your employment status and salary.
If you're self employed then obtaining a mortgage is a little more difficult. You will need to provide proof of your income for the past 3 years (tax returns, invoices, contracts etc...).
7. What documents will I need for a mortgage application?
Not all lenders will require everything listed here, but we recommend getting these documents together. getting these together early will ensure a speedy process for your mortgage, and ensure no delays with the valuation.
- Proof of your identity, usually a passport or driving licence.
- Proof of your address - usually a bank statement, utility bill or council tax bill not more than 3 months old.
- Last 3 months pay slips
- Last 3 years SA302's if you are self employed or a director of a limited company, you will need to request these from the inland revenue, you can call the HMRC on 0845 900 0444, please check call charges.
- Last 3 years signed accounts.
- last 3 months bank statements showing your salary credited to your account
- Last Tax Credits award statement if you need to use your tax credits as part of your income.
- Last 3 months bank statements shoing child benefit if you are using this as part of your income.
- Last mortgage statement - not many lenders request this as your mortgage usualy shows on your credit file, but worth getting just in case.