FAQS

It’s like a preliminary step in the mortgage process, where the lender gives you an idea of how much they might lend based on a quick review of your financial details. It helps you set a realistic budget when you start looking for a home.

Once you’ve found the property you want, that’s when you’ll submit the formal mortgage application. That involves more paperwork, and the lender will assess the property and your finances in greater detail before making a final offer.

Generally, lenders offer mortgages based on a multiple of your annual income, but  the exact amount can vary depending on your individual situation. Factors like your credit score, monthly expenses, and overall financial health play a big role in the lender's decision.

For example, if you have high monthly debts, a low credit score, or irregular income, the lender might offer you a lower amount or could even deny the loan. On the other hand, if your credit score is strong and you have stable income with little debt, you may be able to borrow on the higher end of that range.

Lenders may also ask for proof of income, bank statements, and other documentation to assess your affordability. This is why it’s important to ensure your financial house is in order before applying for a mortgage!

Mortgage Borrow Calculator

The loan to value – often shortened to LTV – is the size of the mortgage compared to how much your property is worth. It’s usually expressed as a percentage figure. For example, if a mortgage is offered at 90% LTV, you’ll need to find a deposit of 10%. The lower the LTV, the lower the mortgage interest rate tends to be. 

How Much Can I Borrow

With a fixed-rate mortgage, the interest rate remains the same for a set period, such as 2, 5, or 10 years, so your repayments are predictable. This can be great for long-term planning and stability, especially if you plan on staying in the property for a while.

A variable-rate mortgage, on the other hand, is tied to the Bank of England base rate. The advantage here is that if interest rates fall, your payments may decrease, but the risk is that if rates go up, your payments will increase as well. This can make budgeting a bit trickier, but potentially more flexible depending on how the economy shifts.

It’s also worth noting that many variable-rate mortgages come with a tracker rate, which directly tracks the Bank of England base rate, or a discounted rate, which offers a discount off the lender’s standard variable rate.

While 35 years is often the maximum term for many mortgages, most people tend to go with a 25- or 30-year term for a good balance between affordable monthly payments and a reasonable overall interest bill.

The longer term can be appealing due to lower monthly repayments, the total interest paid over the life of the loan can be significantly higher. It's all about finding a balance that works with your financial situation, whether you prioritize lower payments in the short term or aim to pay off the mortgage sooner and save on interest.

Making overpayments on your mortgage is a great way to pay it off faster and save on interest. Even small additional payments can make a big difference in the long run, as they reduce the balance you owe and the amount of interest that accrues.

Many lenders have a limit on how much you can overpay annually, usually around 10%. Going over this limit could lead to penalties, so it’s important to check your lender’s terms before making any larger payments.

If you're looking to make a significant impact without penalties, consider paying small extra amounts regularly, like the £50 per month. It might not feel like a huge change, but over time, it can add up and shorten your mortgage term, potentially saving you thousands in interest.

   Interest-only mortgage: You only pay the interest each month. The loan amount stays the same, and you still owe the full amount at the end.

   Repayment mortgage: You pay both the interest and part of the loan each month. Over time, you reduce the loan, and by the end, it's fully paid off.

So, interest-only means lower payments but you don’t pay off the loan, while repayment means higher payments but the loan gets paid off over time.

With a buy-to-let mortgage, how much you can borrow mainly depends on how much rent the property will bring in, not your personal income.  We  can help you by finding the most suitable mortgage deal and handling most of the work for you, making the process easier.  

Most lenders will want at least one month's pay slips, bank statements, and a contract to confirm your income. However, some may accept just your contract without the payslips

We're here to help you find the right lender for your situation !

Yes, it's possible to get a mortgage with bad credit in the UK, though it can be more challenging and may involve higher interest rates or larger deposits. Specialist lenders cater to those with poor credit histories.   We have lots of experience in assisting clients find the right lender in these circumstances.