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A mortgage is a method of using
property as security for the performance of
an obligation, usually the payment of a
debt. The term mortgage refers to the legal
device used for this purpose, but it is also
commonly used to refer to the debt secured
by the mortgage, the mortgage loan. For more help on
Mortgage frequently asked
questions click here.
In the UK mortgages are strongly associated
with loans secured on your home rather than
other property (such as ships) and in some
cases only land may be mortgaged. Arranging
a mortgage is seen as the standard method by
which individuals and businesses can
purchase residential and commercial real
estate without the need to pay the full
value immediately. We focus on the special
needs mortgages and adverse credit
mortgages for people who have been refused a
mortgage at their high street bank or
building society. The range of mortgages are as follows:
If you want to
find out more about
your current credit
status click here or using are "Credit
Status" icon above. If you would would like alternative
mortgage providers then click here to
open a new window to our " mortgage partners" or visit our complete
list of "finance
partners"
Remember - We will try to help you find the
financial solution for your current
circumstances. It costs nothing to enquire,
you are under no obligation, it only takes a
minute and you get a quick "in principle"
decision.
Mortgage
Frequently Asked Questions
- What is a mortgage?
A mortgage is a form of loan which is
taken out against property. The
definition of property may include a
house, a flat, or an apartment, although
mortgages cannot be taken out against
any other assets such as a vehicle,
stocks and shares, or other investments.
A mortgage can also be taken out against
an office, a shop or a factory (this is
known as a commercial mortgage), or
against a property which the owner
intends to rent out to other tenants
(buy-to-let mortgage).
- What is a remortgage?
This is when the terms of the original
mortgage are renegotiated, and usually
means that the borrower increases the
amount that they are borrowing, which is
often possible due to a rise in the
value of the property. A remortgage may
allow the homeowner to repay other debts
such as personal loans or credit cards,
or it may be a way of paying for home
improvements such as a conservatory or a
loft conversion etc. Remortgaging may
involve getting a better deal from your
current lender, or it may mean changing
lenders if a rival is offering a more
competitive rate. The remortgage usually
will involve a survey of the property
taking place, and an updated valuation
of the property, which will take into
account any changes in value due to home
improvements, or due to fluctuations in
the local or national property market.
- I have seen many finance terms that
I don't understand, can you help?
We suggest you visit our
glossary of
terms for more help.
- What fees will I have to pay to
get a mortgage?
The fees that are payable will depend on
the lender that best suits your
requirements, and may include:
Stamp duty
Valuation fee
Arrangement/booking fee
Higher lending charge (where applicable)
Other legal fees may be payable, again
dependant on the lender that is chosen
- How does my credit rating effect
the amount of money I can borrow?
Different lenders would use different
criteria in order to determine how much
capital they are prepared to release for
borrowing. These factors may include
your credit history, how long you have
stayed with your employer, or at your
current address; your income, your job
type, your age and relationship status.
- What factors will influence my
credit score?
Length of stay at current address
Length of time with current employer
Type of employment contract
Your salary
Your monthly outgoings
- I've only just started my job -
can I get a mortgage?
Lenders essentially offer mortgages
based on an individual's ability to
repay the debt. This means that as long
as you are in gainful employment/self
employed and have the ability to make
the monthly payments on a mortgage, it
should be possible to secure the
mortgage that you want.
- How many years can I take a
mortgage out over?
While some lenders set their maximum
term at the traditional 25 years, there
are lenders that now offer mortgages
over 30, 35 and 40 years.
- What is the maximum age for a
mortgage?
There is no set maximum age for a
mortgage, though lenders will be
concerned to ensure that a mortgage that
will take you into retirement will
continue to be affordable to you.
- What is a repayment mortgage?
A repayment mortgage is one for which
each monthly payment contributes to the
capital and the interest that is to be
repaid over the term of the mortgage.
Assuming that the contractual payment is
made each month for the full term of the
mortgage, at the end of the term the
mortgage will be fully repaid.
- What is an interest only
mortgage?
An interest only mortgage means that for
each monthly payment that is made, no
capital is repaid. The monthly payment
will only cover the interest that is due
to the lender each month. At the end of
the term, if only the interest has been
paid each month the borrower will still
owe the capital that was originally
borrowed.
- How much can I borrow?
The maximum loan available will be
determined by either the income
multiples that the lender will use, or
by an affordability calculation.
- I am a council tenant- can I buy
the property I live in?
The council offers a right-to-buy scheme
to enable council tenants to purchase
the homes they live in at reduced
prices. By contacting your local
council, they will be able to advise you
whether you are eligible for their
right-to-buy scheme.
- Can I get a mortgage even with my
bad credit history?
There are many lenders that will assist
people who have had problems with credit
in the past. The rates charged will tend
to be slightly higher than those offered
by high street lenders- our job is to
make sure that you get the cheapest deal
that is available for you.
- How many mortgages can I have?
If you already own the property that you
live in, lenders will offer further
mortgages for investment purposes. These
are known as buy-to-let mortgages. There
is no limit to the amount of investment
mortgages that you can have, other than
the fact that each lender may limit the
amount of mortgage debt that you can
have with them. In some situations you
can arrange mortgages on second homes or
holiday homes.
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