020 3053 8647
What Clients Ask The Most
I want to buy a property to live in. How much can I borrow?
Every lender we work with has a different calculation for what they will be happy to lend which will take into consideration all incomes, amount of deposit, term of mortgage, outstanding credit commitments, dependents and other costs that will need to be paid so the figure you can borrow will vary with each. We will ask you for full information about all this and then outline the possible lending amount.
​
Crucially though, the most important thing is what you can afford as a monthly payment. This has to be the main priority when we are looking after you as you do not want a large mortgage that you do not feel you can pay for.
What outgoings are considered when determining how much I can borrow?
Although this can vary depending on the lender chosen, the standard list of outgoings that need to be considered for affordability are:
​
Loans and credit cards with outstanding balances
Car finance
Service Charges and Ground Rent if you are buying a leasehold property
Childcare or school fees
Fixed pension contributions
Travel costs for work unless covered by the employer
Maintenance payments
I am a fixed term contractor. Can I still get a mortgage?
In the ever changing employment market, lenders have adapted their criteria to look to suit the ways that people now work.
​
We often see contractors who require a mortgage be that through an umbrella company or self employment. As long as there is a history of this work without too many gaps and only the one contract at any one time, there are lenders that can look to work to the daily/weekly gross pay figure calculated over a 46-52 week year. Please call us if you want more information on this.
Should I get a fixed or tracker rate?
Having knowledge as to what your monthly payments will be for a set time is beneficial but generally speaking, a fixed rate does have a tie in period with the lender for the duration of the fixed deal. If there would be a plan to repay the mortgage during that time then a fixed rate may not be suitable.
We will discuss the various rate options available to you as part of understanding what you want from the mortgage to advise you on what is most appropriate given the information you tell us.
I am coming to the end of my rate with my current lender. What are my options?
Most of the time, you will likely find the lender you are with can offer a rate range to retain your business but that does not stop you looking around to see if there are better choices.
​
It may be that the lender you are with are not competitive or only have rates that are tied in which may not suit your longer term plans. In that instance it is worth considering if moving the mortgage is worthwhile.
​
We will review the rates you are being offered from the current lender and then compare with the rest of the UK
market to advise you on what is available having taken into account of your circumstances.
​
Moving the mortgage to a new lender does require underwriting and legal representation. A lot of lenders do offer a free basic legal service via a nominated firm but you do also have option to choose a firm yourself which can mean a better service.
I want to get a mortgage on a rental property. How much can I borrow?
Much like residential lending, the amount you can borrow for a buy to let property varies from lender to lender.
​
A lot of lenders will purely work to the expected rent on the property and have a calculation on that dependent on whether you are a lower or higher rate taxpayer. Even then though, this calculation does improve for those looking for a 5 year fixed rate or longer as greater flexibility is there for that.
​
There are some lenders that can look to boost the lending by using disposable income if the rent does not achieve the size of mortgage that you want to get so we can review that with you to see if that improves the numbers if required. That would need to take into consideration all incomes and outgoings in a similar way to residential lending.
What do I need to consider when buying a leasehold property?
There are a few main points to establish if you are interested in a leasehold property when it comes to getting a mortgage.
​
The first of these is the amount of any service charge and ground rent. This is a cost that any lender will factor in when assessing how much they will lend so the higher these costs, the more it can impact the amount of mortgage you can get.
​
Secondly, on the ground rent it is important to ask about any future increases that are scheduled. Mortgage lenders generally do not like ground rents that double at set intervals as it could make the property hard to sell. Ground rent increases tied to inflation are normally okay.
​
Lastly, the length of time left on the lease is important. The shorter time left, the harder it can be to get a mortgage but this may also mean higher costs for you in the long run. If you are looking at a property with a short lease, it is important to discuss this with us as early as possible.
I want to buy a property that needs work. Is this okay?
The key to this will be the level of work needed. If the property is just dated and needs bringing up to date but is habitable this should be okay for a lot of lenders.
​
The barriers come from when a property has structural problems or is uninhabitable as a lender is being asked to lend on how the property looks now rather than what it could look like. Once a lender provides the money, they have no guarantee that the improvements will be made hence why they cannot lend on the basis of what can be done.
There are lending options for properties that need more work though so you should discuss this with us so that we can determine what the right solution might be.
Is there anything to consider if I want to buy a flat?
Firstly, please check out the answer above about buying a leasehold property as that is a good starting point.
​
Aside from that, there are a number of considerations for a lender when determining if they are happy to lend.
​
Some of the questions that a lender will ask are:
​
1. How many floors there are in the building?
2. What floor is the subject flat on?
3. What is the construction type and is there are cladding?
4. Is the block ex-local authority and if so, how many of the flats are now in private ownership?
5. If there are 4 or more floors, is there a working lift?
6. Are the individual flat front doors internal or on an exposed balcony?
I7. Is there any commercial unit on the ground floor and if so, what type of business?