Q: How much mortgage deposit will I need?
A: The minimum deposit most lenders will accept is 5% of the purchase price. However, the larger the deposit you have the less of a risk the lender will see you as and the interest rates on offer will be better. With house prices still being very high finding 5% for most people can seem almost impossible. If this is the case please feel free to phone me on 01793 354443 to discuss possible solutions.
Q: How much could I borrow?
A: Most lenders have moved away from simple income multiples towards much more complicated and variable affordability calculators. As an indication expect it to be between 3 and 5 times gross income depending on any other commitments you may have and from one lender to another. This is an area where after discussing your own situation with me I can give you a much clearer idea of your own maximum loan amount and what the mortgage costs will be.
Q: How can I improve the chance of being approved for a mortgage?
A: Lending is now much harder to obtain than a few years ago so it is vital you do everything possible to improve your chances of success. This will include making sure you are registered on the Electoral register, paying any credit commitments on time with no missed payments. For many first time buyers with no credit it can sometimes be hard to demonstrate a good credit record. Therefore you may want to take a credit card with your bank for small regular transactions to build up a record of good credit handling. Of course it must be done sensibly and only at levels where you can clear the whole balance every month as borrowing on credit cards can be expensive if this is not done. I can use a mortgage calculator to find out how much you can lend with all the lenders to prevent wasted applications.
Q: What Insurance will I need?
A: Unless the property is a flat with Building Insurance included in the monthly fee building insurance is usually a condition of the mortgage. As well as this you should consider covering the mortgage with a mixture of Life Cover, Critical Illness Cover, Income Protection and Contents Insurance. This mix will depend on your own situation and budget. I can help put this package together for you to exactly match what you need and can afford.
Q: How much Stamp Duty Land Tax will I have to pay?
A: Up to £250,000 - Nil
£250,001 to £925,000 - 5% (on this slice only)
£925,001 to £1,500,000 - 10% (on this slice only)
Above £1,500,001 - 12% (on this slice only)
For a first time buyer purchasing a property up to a value of £625,000 they will only pay 5% of the amount between £425,000 and £625,000.
If you own a 2nd property (and are not selling one classed as the family home when buying another family home) then you need to add 3% to each of the slices above. These are the rates in England and different rates apply in Scotland, Wales and N. Ireland
Q: When should I start looking at re-mortgaging my existing mortgage?
A: Between 3 and 6 months before the current mortgage rate ends.
Q: Do you charge a fee?
A: We charge a maximum fee of £500 where the mortgage applied for will be below £100,000. This fee is for advice, research, recommendation, implementation (e.g. application, administration of arranging the loan). We will also be paid by commission from the lender. Please note no fee is payable where the mortgage is over £100,000.
Q: Are you a Whole of Market Adviser?
A: Yes. I am completely impartial for which lender I recommend and this depends entirely on your situation, requirements and the deals available at the time. I am self employed and am based in Swindon and have a very good knowledge of the local market.
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