Frequently Asked Questions
I know how hard it can be to secure a mortgage, which is why I want to provide you with the best information and resources at all times. Below you’ll find answers to some of the questions I get asked the most.
Still have a question? Feel free to get in touch with me using the 'Contact Us' page.
How much can I borrow?
This is by far the most common question I get - and not just from first-time buyers! It is much more complicated than some people think, each bank will assess overtime, commission or bonuses differently. Some banks will be much harsher on anything you have on finance. I always say get in touch and we can have a chat about this to get you a definite answer.
I used an online calculator - why did I fail an AIP?
Online calculators are not always accurate as you have to also know the lender's policies. Not all banks accept bonuses or overtime so you could enter it in and think you can borrow much more than they would actually lend. Please get in touch and we can cover all of the market rather than checking every calculator out there.
Would interest only be better for my residential property?
In nearly all cases NO! Many banks would not even lend on interest only and over 35 years you would expect to pay twice as much interest. On interest only you would expect to have around £25,000 less equity in your property after 5 years compared to a repayment mortgage.
(National average figures used).
Why do I need a mortgage broker when I could just apply online myself?
Moving is a stressful thing and your mortgage broker should be there to help you all the way through. I would look through each lender to find who would lend the most, who is offering the cheapest deal and which lender out of almost 100 would be best for you. I would then do the application and deal with the bank as the application progresses, currently mortgage applications are taking around 3 weeks, have you got enough time to do all of that yourself? Also I deal with estate agents, solicitors and surveys everyday so I can assist and help on all of these points to try and keep your stress levels to a minimum.
Which is the best lender?
This answer is different for each customer, I have used 14 different banks in the last 3 months and each time the bank was the best for that person’s circumstances so it is impossible to say that one lender is the best.
How often do interest rates change?
At the moment, almost daily. It really is that quick moving currently, if you are offered a deal today then it could easily have changed within a matter of days and in the last 6 months they have only moved upwards so it is a difficult time for people looking to buy. We can reserve an interest rate for you for 2 months – please ask so I can explain how this works, there is no commitment on your part but means you have that rate guaranteed for the 60 days.
Can I borrow 90% plus stamp duty or refurb costs?
Unfortunately not. It is always worth discussing but in general this will not be an option.