FAQs

The main advantage of using a broker as opposed to your own bank is the access to a wider choice of lenders, independent advisers can access the whole of the market whereas banks will only offer their own products which may not necessarily be the best suited for you.

Find all the answers about Mortgages below

The most common question asked by people looking to raise a mortgage.

The answer is not simple. it involves multiple personal factors on income and expenditure as well as varying lender criteria. In April 2014, the FCA released new regulation called the Mortgage Market Review (MMR). This regulation tightened up affordability checks and put more responsibility on mortgage lenders to ensure borrowers could afford the mortgages they were taking out. Since MMR lenders hide behind affordability calculators which ask a range of questions relevant to their criteria and then produce a maximum mortgage amount.

Your brokers job is to find out all they can about your income and expenditure and research the market to find a mortgage suitable for your needs.

Every lender has their own criteria when it comes to what they will and will not accept for income some lenders will take 100% of your bonuses, overtime and commissions into consideration while others may only take 50%. It is also common for lenders to have varying opinions on your expenditure. Some will take pension payments and childcare costs into their calculations while others will ignore them and have built It Into them into calculators already.

Due to the complex nature of affordability, we would always recommend taking Independent Advice on your situation.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

The initial stage in the mortgage application process can be known as Decision in Principle (DIP), Agreement in Principle (AIP) or Mortgage Promise… they are all the exact same thing.

Whilst you can arrange a Decision in Principle (DIP) direct with a mortgage lender, our broker will be happy to arrange the Decision in Principle (DIP) for you. They will learn about you and your requirements and apply on your behalf to a suitable mortgage lender. All being well the lender will provide you with a certificate which you can present to Estate agents to prove you have been accepted in principle for a mortgage.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

A repayment mortgage is a term generally used in the UK to describe a mortgage in which the monthly payment will repay the capital amount borrowed as well as accrued interest, so that the amount borrowed decreases throughout the term and by the end of the loan term has been fully repaid. 

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Find all the answers about Equity Release below

Equity Release is the umbrella term for two types of financial products:

Lifetime mortgage – a mortgage in which the debt is repaid upon death or long-term care. You retain ownership of your home.

Home Reversion Plan – Where you sell your home at a big discount but are allowed to live there until death or long-term care.

We do not provide advice on Home Reversion Plans so this answer will only be in regard to a Lifetime Mortgage. The borrowing amount on a Lifetime Mortgage is based on two main factors: the youngest borrowers age and the value of the property.

Lifetime mortgage providers have calculations where they take borrowers ages vs the value of the property and provide a maximum loan figure.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

The main between a lifetime mortgage and a home reversion plan is when you take out a lifetime mortgage you retain ownership of your home. With home reversion plans, you sell a share of your home in exchange for a lump sum of money or a lifetime of regular income.

The other difference is that with a lifetime mortgage, a fixed interest rate is agreed at the time you take out the plan. This interest builds up as compound interest over the years. With home reversion plans there is no interest to pay as it is technically not a loan. However, if your property increases in value, you will only benefit from the increase in value, you will only benefit from the increase in the value you own.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

No. For a lifetime mortgage the amount of money you borrow against the value of your home, plus any rolled-up interest can never go above the value of the property – When it’s sold at the end of the plan – due to a No Negative Equity Guarantee.

It is worth noting that with a Home Reversion Plan you do sell a percentage of your home.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Taking out an equity release plan could leave your family with little or nothing to inherit from your property. You need to be comfortable with this possible outcome and may wish to discuss it with them before committing yourself. You may also want to consider including your family in any discussions you have with your financial adviser or your solicitor.

You may be considering releasing equity from your home to help younger family members get on the property ladder or pay for school or university fees etc. If this is the case, you need to consider the implications of releasing the equity now as it will not be available later should you need it for other purposes.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.