Frequently Asked Questions
Mortgage Questions
A self cert mortgage allows you to certify your earnings without having to supply proof of income documentation, such as pay slips or fully audited accounts. Self cert mortgages are generally suited to those who are self-employed, or employed but have an irregular income, due for example to bonuses and commission. They are also suitable for those who may have several jobs, possibly seasonal wage earners or those who regularly undertake short term contract work.
To find out if you qualify for a self cert mortgage contact us and we'll advise if this is the option for you.
Self-Certification/No Proof of Income - The overall cost for comparison is 8.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
- the mortgaged amount
- the interest rate
- the mortgage term (number of years to repay)
- if the mortgage is interest only or a repayment
A Key Facts Illustration detailing what your monthly payments would be will be provided after consulting with one of our advisors. You should also consider the additional costs involved when budgeting for your mortgage. These are:
- valuation fee, payable to an approved independent surveyor often commissioned by your lender, who will carry out an assessment of the value of the property
- arrangement fee, this is charged by your lender when arranging the mortgage, although some mortgage lenders have deals that do not incurr arrangement fees.
- solicitor's fees for carrying out the conveyancing work on your property, where they check the deeds are in order.
- Buildings & Contents Insurance and Life Assurance
To find out exactly how much your repayments will be use our online enquiry form to send us your requirements one of our advisers will contact you to discuss your requirement and provide you with a quote.
Contact us in the first instance and we'll advise you on your best re-mortgaging options. We'll check the terms and conditions of your existing mortgage and these will indicate if you are tied-in to your existing mortgage deal or if there are any early repayment charges (redemption penalties).
It's then up to you to decide if it's worth moving to a different lender or stay with your current one until the penalties have expired.
It's not easy to give an exact time scale as there are many influencing factors, such as whether you are purchasing a new property or remortgaging.
If you are remortgaging it can take around a month but this does depend on how qresponsive your solicitor is, as they can delay the process.
People with an adverse or poor credit history and those going down the self certification process may find it takes longer to get lender approval as their financial position is usually a little more complex.
Capital & Interest method: - The capital and interest elements of the loan are paid off with each monthly instalment, with the balance reducing over the length of the loan. Therefore by the end of the mortgage term, assuming all mortgage payments are made, you have paid off the balance in full and you own your property outright.
Interest only method: - The balance of your mortgage stays the same throughout the mortgage term. Interest and usually a premium in a suitable investment vehicle are paid monthly. At the end of the term, the proceeds from the investment vehicle are intended to repay the mortgage. This amount will depend on the performance of the investment vehicle. If you do choose an interest only mortgage you are responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the term.
At the start of each phase of the build, money is released to finance the construction. This enables you to negotiate the best prices for material and labour.
So if you are a council tenant wanting to buy your home, you may qualify for a discounted rate which will depend upon how long you have lived there. The amount of discount will be in proportion to the number of years you have been paying rent for your council property.
Once your right to buy has been approved by your council, think about how much you need to borrow and what you can afford to repay. You may decide you wish to carry out home improvments in which case most lenders will allow you to borrow a little extra in addition to your mortgage. All borrowers are required to be on the right to buy papers.
Right to Buy - The overall cost for comparison is 8.2% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
Equity Release Questions
- You are a homeowner with little or no mortgage outstanding
- You and your partner are aged between 55-95
- Your home is worth at least £50K