Frequently Asked Questions
Buying a house is an exciting time for many, but it can be stressful for few if they are confused about where to start? Therefore, we have put together several questions to ask your advisor when buying a house.
How does a Mortgage application work?
A Bank or Lender loans money with interest. In return their loan is secured against the value of a person’s property. The details of the loan agreement are registered against the Title of that property- this is known as a mortgage.
Who is a mortgage broker?
Mortgage brokers are mortgage providers who will look for a suitable mortgage product on your behalf in order to ensure you get the best possible deal. Fees and success rates vary from one broker to the next.
What types of Mortgages are there in the market?
There are two main types of mortgages;
Fixed Rate Mortgage and Variable Rate Mortgage. A Fixed Rate Mortgage means that your interest amount is fixed for a period (usually two to five years) therefore your repayments don’t change.
A Variable Rate Mortgage means the amount of interest you pay can change, and therefore so do your repayments.
Am I eligible for a mortgage?
If you have a regular income, a good credit history and money for a deposit then there is a very high chance you will be eligible for a mortgage. Even if you don’t tick all those boxes there are many different lenders who each target their own niche, bad credit lenders for instance so there is probably a mortgage just right for you too. If you really want to know just get in touch and with just some little basic information, we should be able to tell you about your chances of securing a home loan.
How much can I borrow?
You may be able to borrow around 4.5 times your annual salary although each lender has different lending criteria so in practice you may be able to lend considerably more by using one lender over another. This is because they will each assess the affordability of the mortgage by taking into account your outgoings each month but each lender has a different way of working this out so where one mortgage provider may consider health insurance payments and TV subscription to be an outgoing another lender may not, meaning they will likely be happy to lend you more money.
What does whole of market mean?
Some mortgage brokers (usually the ones who work for an estate agency) are limited to a panel of selected lenders with whom they place all their business. Being restricted to a handful of lenders like this means they often cannot offer the best rates. Simply Mortgage Place Ltd is a whole of market mortgage broker, which means we have access to almost the entire mortgage market, from high street banks and large well-known mortgage lenders to smaller specialist lenders that cater to a certain kind of client such as those with a poor credit history. Many of these lenders only work with mortgage intermediaries like me and so you won’t find them on any price comparison website meaning you aren’t really comparing the whole market when you ‘Compare the Market’.
I have bad credit; will this be a problem?
Worrying about your poor credit history can be stressful but getting a mortgage needn’t be. Speak to Simply Mortgage Place Ltd today and let them help you understand your credit report and whether it’s going to affect your chances of getting a mortgage. And once we’ve have found you the perfect home loan, we will complete the application and handle the whole process from start to finish.
Is the Mortgage advice independent and impartial?
Yes, our advice is always independent and impartial, we will recommend what we consider to be the best mortgage deal to meet your needs. I Muhammad Ali offer open and honest professional advice based on your individual circumstances.
How do I know I’m being offered the best Mortgage available to me?
Being a ‘whole of market broker’ means that we have access to the whole mortgage market. We search and compare the entire market to find the best offer and do all the hard work for you.
What fees are involved in getting a mortgage?
Our charges are based on two considerations: the loan amount and the complexity of your individual circumstances. We will provide you with a free initial consultation and we will always explain what you will be charged before you decide to proceed with an application. As we offer a bespoke service our fees can vary, however, we estimate it to be a maximum of 1% of loan amount.
How much can I afford?
There are no criteria to determine how much you can borrow. The amount you qualify for will be determined by the purchase price of the property, the deposit you are able to put down, your income and monthly expenses.
How does the process work?
Check out our white board video for more information or get in touch with us today to discuss it further.
I like to invest in a rental property is this something you can help with?
Yes, whether you are a first-time landlord, or you already have a portfolio, Simply Mortgage Place Ltd look forward to arranging your mortgage requirements for you. Whether it be a new mortgage, re-mortgage or further advance we are always here to help.