This is a logical follow-up question. Again, insist on a specific reply.

And once you’ve received answers to these questions, ask if the broker would be willing to put both claims in writing. That will indicate how seriously those claims should be taken.

If a problem arises during the loan application process, you’ll want your broker to respond quickly – hence this question.

Again, demand a specific answer – “Within three hours”, say, rather than “Quickly”.

The reason for this question is so you can discover whether the broker will closely guide you through what is a complicated and stressful process – or expect you to figure it out for yourself.

Organising finance and purchasing property can be complicated and stressful, so you want to know you’re in safe hands. That’s why, before you settle on a particular broker, you should challenge the broker with this question.

Don’t let the broker get away with vague statements like “Because I’m the best” or “Because I provide great service”. Use follow-up questions to demand detail. “What specific things make you better than other brokers? What, specifically, do you do to deliver great service?”

Another important question to ask. That’s because while most brokers focus on ‘plain vanilla’ clients, others might focus on, say, sophisticated investors or borrowers with credit problems.

Hypothetically; Broker A might have done 450 vanilla loans and 50 bad-credit loans, while Broker B might have done 50 vanilla loans and 250 bad-credit loans. So if you were a borrower with credit problems, you might be better off with Broker B.

Next, probe them about their customer service standards

A great way to utilise the knowledge and experience of a broker is to get them to work out the true cost of your home loan. Based on whether you’re paying Repayment or interest only, how much of a deposit you have, the length of your loan term and the rates payable your broker will be able to obtain a mortgage illustration which will have the true cost on it. This is normally depicted by the Annual Percentage Rate (APR)

By maximising your deposit amount and minimising your loan term, you stand to significantly reduce the overall cost of your loan. However, there is much more to answering what the true cost of your home loan will be. Upfront fees such as valuation fees, conveyancing and legal fees need to be added to the total cost. Ongoing fees such as those you can incur for using a drawdown facility.

While it’s impossible to forecast the entire cost of your mortgage to the penny – and let’s not forget how life circumstances and changes can affect your ability to pay your loan too – a broker can can help clarify the big picture details. Mortgage Saving Experts can recommend any protection or insurances to protect you and your family to cover life unfortunate eventualities and our team of advisers can use this information to help you decide which loan is best for your circumstances.

The big question plaguing home buyers tends to be, ‘how much can I borrow?’ Each lender is massively different in this area so as a maximum depending on many factors. In the majority of cases, you can borrow up to around 5 times your gross annual salary but in some instances, you may borrow up to 5.5 times your gross annual income

Once you speak to us, however, we’ll be able to give you a much more accurate indication of your borrowing capacity. Brokers act as the go-between for you and the lender. Lenders will need to know your living expenses, debts, credit score and whether you have dependents. A broker can factor all these things into the right loan.

A broker can also explain home loan terms you’ll need to know, such as LTV, which is the initialism for Loan-to-Value and refers to the percentage of the total loan amount you seek to borrow as a percentage of the property purchase price or value. They can also explain things like the differences in interest rates and repayment types such as Interest Only and Repayment (Capital & Interest)

This is a good follow-up question to ask, as it will give you a better understanding of the mortgage broker’s experience.

For example, imagine two brokers joined the industry in 2013, but that Broker A had written 500 loans during that time and Broker B had written 300. In that case, even though both parties would be able to claim five years of industry experience, there would be a clear difference in hands-on experience.

This is a good place to start, because a more experienced broker will generally be more knowledgeable than a less experienced broker.

Press the broker to give you a specific answer, such as “Eighteen years” or “I’ve been a broker since 2007 and in the mortgage industry since 2001”, rather than something vague like “I’ve got a lot of experience”.

Always best to speak with an independent mortgage adviser as they can search the whole of the market for the best deal for you which can save you time and money. Stops you contacting each mortgage lender in the marketplace. Brokers also get exclusive rates from some lenders and may be able to get you a better deal than you can directly.

you can either pay off your existing mortgage and get another one on the new property, or if you are tied in by Early Repayment Charges with your existing mortgage deal, you may have the option to port (transfer) your existing deal over to the new property.

Yes. As long as your income is sufficient enough for you to borrow the amount you require you can. You can borrow the extra money for any legal purpose such as consolidating your debts, to purchase another property, for a new car or to go on holiday.

Yes. This will all depend on what your bad credit is. An example if you have had defaults, County Court Judgements, Debt Management Plans, Arrangements with creditors, IVAs and Bankruptcies

The best thing to do in this instance is to call your mortgage lender and make arrangements to make lower payments or in some cases some lenders allow you to take repayment holidays. If you arrange lower payments on your mortgage this will adversely affect your credit rating so please think carefully before doing this as this will affect your credit worthiness for any finance.

This depends whether your current deal has any Early Repayment Charges. Chances are of you are in an initial fixed or tracker rate you could very well have Early Repayment Charges and will be charged for paying off your mortgage early. If you are on the lenders variable rate then 99% of the time you will not be charged for paying your mortgage off. MOst lenders also charge a “closing administration fee” also which can range from £90 – £250 approximately. Either check your current mortgage offer or the easiest way is to call your current mortgage lender and ask.

Depends on the mortgage deal. Most lenders offer you a couple of rates. One rate will be low with an arrangement fee and the other will be higher with no arrangement fees. If you have a small mortgage chances are it is worthwhile choosing a new deal with no arrangement fee and paying a higher interest rate. Your mortgage broker will be able to work this out for you and recommend the correct mortgage interest rate

Yes. There are some stipulations to this. For example they have to be over 18.

Generally no more than 5.5 times your gross basic salary. This does vary massively from lender to lender and depends on things like how much you earn, how much deposit you have. Most lenders will lend more than this in some occasions. The answer to this question is a minefield in itself so I woul drecommend speaking with an independent adviser to see what you can borrow.

As long as you want them to. There are two answers to this. If you are talking how long will my initial rate last then you can have a rate from 1 year or a rate which can last for the lifetime (or term) of the mortgage.

If you are asking about the “term” of the mortgage then they typically range from 5 years up until 40 years. For the older client, there are options for the mortgage to run for your entire life span (these are called equity release or lifetime mortgages) More lenders are lending to older people with no end age so as long as you keep up the repayments on the mortgage it is only payable when you pass away or until you sell the property.

Yes. These properties are called Buy to Let mortgages or Let to Buy. These are easy enough to arrange but not all mortgage lenders will offer Buy to Let mortgages.

Also known as an Australian mortgage – this is a brilliant concept. An Offset mortgage is a mortgage which is tied to a bank account and a savings account. If you have a £100,000 mortgage and £10,000 worth of savings then you only pay interest on £90,000 worth of mortgage. This is because your savings have been “Offset” against the balance of your mortgage. As interest on mortgages are mostly charged daily if you pay your salary through your linked bank account along with your savings you have one of 2 options in this instance to either 1. reduce the term of your mortgage and keep the payment the same or 2. reduce the payment and keep the term the same. Either way, depending on how much you pay through the accounts and dependent on savings, you could potentially save a great deal of money. You would not earn any interest on your savings, but you save interest on the money you owe on your mortgage.

Life insurance premiums can start form as little as £5 per month.
The things that affect the cost of your premiums are, your age, if you are a smoker or non-smoker or what extra options you choose for the policy such as critical illness cover or waiver of premium.

We have years of experience arranging and advising life insurances. We can help you find the cheapest and best policies for your circumstances.

Life insurance can be taken for several reasons. Most people use it to pay money to remaining children, spouses or beneficiaries to pay for funeral costs, pay off a mortgage or even have surplus money to help replace income

You must be over the age of 18 at the time of application. Ideally a UK resident

Life insurance/assurance is designed to pay a cash lump sum to the family of the deceased person insured. It helps your loved ones financially upon your death. The money can be used for whatever the family needs to use it for like having an income if the deceased person is the main income earner in the household or for funeral expenses. You do not have to have a mortgage to have life insurance. There are many forms of life insurance. Please feel free to ask us what are available.

There are a couple of differences between these two policies:

1. The ASU policy will pay out for only 12 or 24 months depending on which policy you take
2. The other main difference is an ASU policy covers for Unemployment where an Income Protection Policy does not

To ensure you get excellent value for money when buying an ASU policy, it is always best to compare a range of insurance providers. Our insurance experts will search the whole of the market for you and advise you of the cost of the policies and what they cover.

ASU is policy is designed to pay you a monthly income for a short period of time if because

1. You lost your job which was not your fault
2. You have had an accident and are unable to work
3. You are to ill to work from becoming ill

An ASU policy is designed to pay you monthly payments for a period of either 12 or 24 months depending upon the length of term of the policy you set up. This is different to Income protection where an Accident Sickness or Unemployment policy will only potentially pay out for a maximum of 12 or 24 months or whenever you return to work, whichever happens sooner. The Income Protection policy pays out for the rest of the policy term or until you return to work so that could be for more than 24 months.

There are many forms of business protection and listed below are a few:

1. Shareholder protection – Protects company shareholders
2. Partnership protection – protects partners
3. Business life insurance – protects your employees
4. Business loan insurance – money to pay off debts should the worst happen
5. Key person insurance – protects a key individual within your business
6. Relevant Life cover – protects all staff members who are paid a salary

There are many providers of business protection. Most of the major insurers do but they will only flog you their own policies and do not search the whole market for you. Finding the best and most suitable one for you is a minefield because you need the right cover, for the right term and you need to set the policy up correctly and write the policy in trust.

Business protection is an insurance policy which is designed to pay a cash lump sum to a company should the person insured die or contract a critical illness. The person in the business may be a key person such as a director or partner. The policies are life insurance and critical illness cover policies, but they are written in trust, so the money can go back into the business.

An example of where this could be effective is, if one of the directors of your company dies then how would the business be affected? Could the business survive without that person?
The idea that the money from the insurance policy would be sufficient to repay the surviving family the shares that director owned in that business, as well as leaving enough money to replace that person with someone else who could do the old directors job. It will also give enough money for the business to continue trading for a little while whilst you replace the deceased person.

Chronic conditions are considered as incurable so are normally covered on the NHS such as diabetes, so insurers do not normally cover these

Yes. Premiums do normally go up with age and the things that may affect your premiums are things like your claim history and your insurer

Yes. We can tailor plans to suit your needs and budget. They do have extra options you can include or exclude to fit your budget

Insurers have a standard list of exclusions and typically they can be things like, war, riots, HIV/Aids, or self-inflicted ailments.

No. Private health insurance will not cover your existing conditions straight away. You may have to wait typically two years before the pre-existing conditions will then be covered depending on what the condition is and whether you meet other certain criteria.

Private Medical Insurance sometimes called Private Health Insurance is designed to cover medical expenses incurred because of accident or illness. It covers the costs for medical treatment at private clinics and hospitals compared to the National Health Service.

There are a couple of differences between these two policies:

1. The ASU policy will pay out for only 12 or 24 months depending on which policy you take where the Income Protection policy could end up paying for a much longer time for long term sickness or accidents

2. The other main difference is an ASU policy covers for Unemployment where an Income Protection Policy does not

No. Income Protection does not cover you for Unemployment, only accidents and sicknesses

You choose the deferred period by asking yourself if you were off work sick how long would you be able to maintain your lifestyle before you start needing financial help. If your work pays you full sick pay for 3 months, then you go to statutory sick pay after that then it would be a clever idea to have a 3-month deferred period. If you are employed or self-employed and do not get any income at all and do not have any savings it would be a wise idea to have a policy which pays out from day one.

The deferred period is the period between you being off work and the start of the payments from the policy, for example if you have a 4-week deferred period on your policy it means you will have to be off work for 4 weeks before your benefits start paying to you. You choose the deferred period before you start the policy.

There are many insurance providers who offer Income Protection. Legal and General, Royal London and AIG are only some of them.

There are many insurers who provide Family Income Benefit. Royal London and AIG are to name just two providers. If you want the cheapest and best policy, then please get in touch with us to find out

FIB is an insurance policy which pays a monthly income to the family or spouse should the insured person die. It pays out for a length of time, for example if you have £1000 per month over 25 years and you die in year 5, then the policy will pay out for the last 20 years of the policy.

It pays out a tax-free cash lump sum to the person insured if they are diagnosed with a defined critical illness listed on your policy

There are several insurers who provide Whole of life cover. Some include AIG, Aviva and Legal and General.

Bridging loans can be used for any purpose the borrower sees fit. Typical uses for a bridge loan include property refurbishment and development, the purchase of a new home whilst waiting for an existing property to sell, the settlement of tax bills and other business-related cash flow problems.

Unlike most mortgages or other secured borrowing products, that clear majority of bridging loans do not have early repayment charges involved. However, if there is a penalty for early repayment, you will be made aware of this upfront whilst applying for a product.

If you are looking for a quick decision on a bridging loan product and you want to avoid any disruption along the way, then it always makes sense to apply for this type of finance at the earliest opportunity – particularly when timing is an important issue.
The general timeframe for most applicants is as follows:
• Decision to lend – less than 48 hours
• Formal loan offer – within 2 weeks
• Loan completion – 2 to 4 weeks – depending on your needs and requirements

Bridge loans are only intended as short-term borrowing products and most bridging lenders will expect the loan to be repaid in full within the agreed timeframe.

Bridge loans are short-term property finance products that enable the borrower to complete one property transaction whilst waiting for another to finalise. A bridge loan can be secured against any suitable residential home or commercial property, or some other real estate asset such as land.

Yes. You can have a secured loan on the property where you live or on any buy to let properties you own

It’s a loan that’s secured against your home, so you need to own your own property or hold a mortgage to be eligible.
Secured loans can be used for many different purposes, including home improvements, debt consolidation or to buy a new car.
As the loan is secured against your home, it gives lenders an extra level of security. As a result, these loans are usually for larger amounts of money, the rates are usually lower, and you can borrow the money for longer, compared to other loans.
Please be aware, it may take you longer to repay what you owe, so you may pay more interest overall.

This will depend on how you wish to finance your build and how much cash you have in savings. If you choose an arrears stage payment mortgage, then you will need sufficient money for a deposit of between 15% and 25% of the land cost as well as money to pay for the materials and labour for the early stages of the build. If you do not have sufficient savings, then you may decide to sell your current house to release equity before starting your new project
Receiving your stage payments in advance during the project will ensure that cashflow is not an issue during the build so you can continue living in your current house until you are ready to move.

One of the benefits of self-building is that it is better value than buying a completed property. One area where you get better value is in stamp duty as you only pay this based on the purchase price of the plot and not on the value of the completed house.

Our specialist advisers can recommend the right mortgage to suit you and your project including the mortgage type (discount, tracker, fixed rate etc), repayment method and repayment terms.
Similarly, arrears based self-build mortgages are also available from several different lenders offering a variety of terms.
Mortgage products change on a regular basis so call us to find out what deals are currently available to you.

Not necessarily. You can start your build with a relatively small deposit and borrow up to 95% of your land costs and up to 95% of your build costs.
If you do have savings however or access to other cash, then you may prefer to use an arrears stage payment mortgage. Whatever your circumstances our advisers will find the best product to suit your needs.

There are several lenders who offer mortgages for customers with bad credit. Which one you can use does depend on lots of things like what bad credit you have. Some lenders you can use are Kensington mortgage Company, Aldermore, Precise mortgage and Magellan Home Loans. They all charges differing rates and fees etc and their criteria is very different from lender to lender. There are even a few mortgage lenders who can help people who have had bad credit in the past.
Our mortgage experts can help you choose the cheapest rate possible given your circumstances

You probably have the Right to Buy if you’re a secure council tenant and have spent at least 3* years as a public-sector tenant. The 3 years doesn’t have to be continuous and you can add together any time you have spent as a public-sector tenant. A public-sector tenant is someone whose landlord is a public body such as a council, housing association or government department. Eligibility criteria also include having no legal issues with debt or any outstanding possession orders. You should be aware that some properties are exempt from Right to Buy.

* In May 2015, the eligibility criteria for Right to Buy was reduced from 5 years public sector tenancy to 3 years.

When you apply for a mortgage, the lender will arrange for a valuation (sometimes called a valuation survey but it’s more of a report) on the property you want to buy. That’s so they know it’s worth what you’re paying for it, and that we’re lending you the right amount.
The valuation will usually mention any obvious defects. But other than that, it won’t tell you anything about the condition of the property. It’s just there to put a value on the property for the lender.
You’ll have to pay for the valuation. How much depends on the size and value of the property. Your adviser will tell you the cost and it will be in your mortgage illustration.
Some mortgages come with free valuations, so it can save you a little bit extra.
A Standard Valuation is the only type of survey that all lenders will instruct. There are other types of survey available. If you’re unsure which type of survey you’d like, speak to your Mortgage Adviser who will be able to provide you with details. The two main additional surveys are:
Homebuyer’s report
This is a more detailed report which provides an overview of the structure and condition of the property, including all the accessible parts. It mentions all major defects and includes a roof inspection where possible. But it doesn’t go into detail or give information about what repairs you need to do to put things right.
Building survey (or full structural survey)
This is generally the most detailed and therefore most expensive survey you can have done.
Like the homebuyer’s report, it covers all aspects of the property. But it gives more comprehensive information on the structure and condition – for example if there’s damp or subsidence. It will also include details of what repairs you’ll need to do to put any defects right, and how to maintain them. However, it does not include a valuation of the property.

The bigger your deposit, the lower your loan to value and therefore the lower your mortgage interest rate may be.
You’ll need at least 5% of your loan as a deposit. Lenders offer a maximum of 95% loan to value.

When you buy a house you legally need to have buildings insurance in place.
Other things you should consider protecting when you purchase a property. Insurances like Life insurance, Critical Illness cover, Contents insurance. How about protecting your income? After all, if you cannot pay your mortgage payments then you or your family could be homeless. There is a great deal of insurances you can have, and they are described and listed under our insurances so why not check it out. Our specialist advisers will recommend what you should have then you can choose what is important to you to protect.

This depends on several factors, like how much deposit you have and how much you earn, how many children you have, what debts you have ion the background.
The on how much a lender is willing to lend is based upon a full affordability assessment where they will look to understand your income, any loan or credit card commitments and regular essential household expenditure. In addition, they also perform a credit check to make sure your credit rating is suitable for mortgage purposes.
To get a more accurate idea of how much you can borrow, get a decision in principle before you apply for a mortgage in full. Arrange an appointment with one of our qualified mortgage experts today. We can at least give you an idea without having to do any credit checks at the initial stage

There may be an underlying issue which you may not think are relevant to doing the mortgage, for example, the lender may not be able to lend you as much as you need because some lend more than others, or, you may have a freehold flat with no lease which narrows the number of lenders you can potentially use. These websites do not show you all the “lending criteria” of each lender. So, if you do manage to apply for the mortgage and something comes up during your application which does not fit within the lenders criteria then you could have paid out good money to be declined. Therefore, it is always best to speak with a professional.

Let’s face it, your adviser must justify to you and the FCA exactly why they have recommended the deal they have.

Another example of criteria that may hinder you in using ANY lender on the market are types of income or types of property. It is ALWAYS worth a conversation with a professional to see what deals are available to you. A professional experienced mortgage adviser will have an idea of where you can potentially obtain a mortgage within a few minutes of talking to you. Click here to Get in Touch with an adviser to call you or call us whenever you are ready. It doesn’t cost anything to talk to someone

I do not mean to sound like the voice of doom, but it may transpire that you apply for that mortgage and it goes through without any problem.

TIP: ALWAYS call the lender before you apply for the mortgage and part with any money to discuss all aspects of your situation to them because that way you find out up front whether your application is likely to go through or not. This is exactly what a broker will do for you

There are 2 types of repayment on a mortgage
1. Repayment (aka Capital and Interest) – this repays the mortgage as you go along like a normal loan i.e. if you borrow £100,000 over 25 years, after 25 years you owe the bank nothing because you have repaid what you have borrowed. Every month you pay part capital and part interest
2. Interest Only – All you do every month is pay the interest on the money borrowed. You do not repay any of the money you borrowed, so, if you borrow £100,000 over 25 years, after 25 years you will still owe £100,000, Interest Only repayment types are harder to get these days due to tightening of criteria and regulations

Fixed rate – A rate which keeps your monthly payment the same for a given period, typically 2,3 or 5 years but longer fixed rate periods are available. These are suitable for people who want to know what they are paying every month. If interest rates increase then your monthly payment stays the same which is a bonus, however, if interest rates go down then your payment will also stay the same therefore you will not benefit.
Tracker rate – this is a rate which goes up and down with (tracks) the Bank of England Base rate. Every month on the news you will hear the newsreader say “the Bank of England decided to keep interest rate the same today” this is what you need to keep an eye out for because if you are on a tracker rate then this could affect your monthly payment. If the BoE rate goes up then so does your monthly payment, but if the BoE base rate goes down then your monthly payment will also go down
LIBOR rate tracker – LIBOR stands for (London Inter-Banking Offer Rate) the rate at which banks charge each other to borrow money. This rate is reviewed every 3 months and can go up and down like the tracker or variable rate. These rates are normally associated with mortgage lenders in the “sub-prime” marketplace. These mortgage lenders normally charge higher rates and are designed to assist people who have had credit problems in the past. The rates are higher because of the higher risk in lending to someone who has a history of missing payments to their creditors
Variable rate – a rate which is set by the mortgage lender who is lending you the money. This rate can change anytime the lender decides. I.e. the BoE base rate can stay the same, but the lender may just decide to increase or lower the rate whenever they want and vice versa. The BoE base rate can increase but the lender may decide to keep or lower their variable rate at any time. The variable rate is also the rate you normally revert to after your initial irate finishes. The variable rate is higher than your initial rate in most cases so just before your initial rate finishes make sure you contact an adviser or your mortgage lender to negotiate a new deal before it increases to the lenders variable rate
Discounted rate – this is a discount from the variable rate as described above. You normally qualify for a discount from the lenders variable rate for an initial couple of years. It will then revert to the lenders variable rate after the discount period ends
Offset mortgages – Also known as an Australian mortgage – this is a brilliant concept. An Offset mortgage is a mortgage which is tied to a bank account and a savings account. So, if you have a £100,000 mortgage and £10,000 worth of savings then you only pay interest on £90,000 worth of mortgage because your savings have been “Offset” against your balance of your mortgage. As interest on mortgages are mostly charged daily if you pay your salary through your linked bank account along with your savings you have one of 2 options in this instance to either reduce the term of your mortgage and keep the payment the same or reduce the payment and keep the term the same. Either way, depending on how much you pay through the accounts and dependent on savings, you could potentially save a great deal of money. You would not earn any interest on your savings, but you save interest on the money you owe on your mortgage, therefore if your mortgage is at a rate of 2% then you will be saving 2% per annum on that money and savings accounts these days are below 1% normally.

After your initial rate finishes your mortgage will normally revert to a variable rate. The variable rate is higher than your initial rate in most cases so just before your initial rate finishes make sure you contact an adviser or your mortgage lender to negotiate a new deal before it increases to the lenders variable rate.

Good advisers will contact their clients around 3 to 4 months before their rate is due for renewal to get their new mortgage deal in place in time. After all you do not want to be paying the higher variable rate when your initial deal ends. Do not leave it until the last minute it can take around 6 – 8 weeks to get all the necessary paperwork sorted to re-mortgage to a new lender with a better deal, so, please do not start a couple of weeks before hand otherwise it will not go through in time

Please note this is different to the credit score on your credit report. Each lender has their own credit scoring system. Some do not credit score at all, but most do.
Credit scoring is done when you apply for a Decision in Principle or Agreement in Principle. As mentioned above, every question that you answer and the type of answer you give to those questions will give you an amount of points and if you reach the required amount of points then you pass their credit score. Even things as simple as an email address or telephone numbers all help to give points so if the lender asks for it give it to them

The following discount levels will apply:

• 3 years – 35% discount for a house and 50% discount for a flat
• 4 years – 35% discount for a house and 50% discount for a flat
• 5 years – 35% discount for a house and 50% discount for a flat
• 6 years plus – add 1% per year for houses (up to 70% or the cash maximum – whichever is lower), add 2% per year for flats (up to 70% or the cash maximum – whichever is lower)

Yes, you can but only certain people can join an application. If you are eligible, you may be able to buy with:

– someone who is on the tenancy agreement with you;
– your spouse or civil partner;
– up to three family members, who have been living in your home for the 12 months immediately before you make the application. They don’t have to be on the tenancy agreement, but it must be their main home.

Housing is a devolved policy, and it’s up to the governments in Scotland, Wales and Northern Ireland to decide whether to offer schemes such as Right to Buy. You can find out more on their websites:

Any period spent in armed forces accommodation can count towards the three-year qualifying period for Right to Buy and the qualifying period for the discount. You can also count this time if your husband/wife/civil partner was a member of the armed forces and you lived with them in this accommodation. If you currently live in armed forces accommodation you do not have the Right to Buy.

Right to Buy was introduced in 1980 and gives eligible social housing tenants the right to buy their home at a discount. Over the years, discount levels and eligibility criteria have varied. Concerned that the scheme had become unaffordable for many tenants the Government has introduced major changes to the Right to Buy since April 2012.
From 6 April 2018, maximum discounts are £80,900 across England and £108,000 in London. Discounts increase in April every year in line with any increase in inflation.

To buy a home through a shared ownership scheme contact the Help to Buy agent in the area where you want to live.

Even if you are eligible for Shared Ownership, not all lenders offer mortgages for Shared Ownership homes.

Once moved in, you won’t be able to make any major changes or improvements unless it’s stated you can in the lease and you have permission from the landlord.
If you decide to sell before owning 100% of a Shared Ownership home, the housing association has the right to find you the buyer. And even once you own 100% of it, you may have to give the housing association first refusal when you come to sell.

It can be a good way (or the only way) to get on to the property ladder – or live in a much bigger home than if you bought outright.

And because you are only buying a share, the mortgage you will need to secure against the home will be significantly smaller than if you were to buy without the scheme.

You may also be able to save extra cash after you’ve paid your rent, which you can invest later in further shares of your home.

To buy a home through a shared ownership scheme please contact your local housing association or help to buy agent in your area.

If you can’t quite afford the mortgage on 100% of a home, Shared Ownership offers you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. Later, you could buy bigger shares when you can afford to.

With Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations or your local council.

These are the important first steps in the Shared Ownership process:

It is important to note Shared Ownership and Help to Buy Shared Equity schemes are different.
With shared ownership, you only own a part of the property with an option to buy more.
With Shared Equity, you own all the property from the start but must repay a proportion of its value when you sell it – equivalent to the proportion of government equity you took to buy it.

The Post Sales Help to Buy Agent will be able to arrange for a ‘Deed of Release’ which will release your partner from the obligation of having to repay the equity loan. Assuming your mortgage lender is content for this to take place and that you can provide evidence that you can meet your housing costs and still have a reasonable standard of living, permission should be a formality.

Because Help to Buy fees are not classified as rent, they do not qualify for Housing Benefit. You should make sure you decide to ensure you can continue to make your Help to Buy and mortgage payments if your income stops. There are insurance policies which can help with this such as Income Protection, Accident, Sickness and Unemployment. Our specialist mortgage and insurance advisers at Mortgage Saving Experts can help you with this.

This depends on whether you bought your home alone or with others.
If you bought the house/flat on your own and you die, the home will be passed on in the normal way under the terms of your will and the payments explained in the Help to Buy guide will be made by your estate in accordance with the scheme. If you have not made a will it will pass under the laws of intestacy.
We recommend a sole buyer seeks independent legal advice about this.
If you bought your home with others and one of them dies, their interest in the property will either be transferred to the surviving co-owner (s) or will pass under the terms of their will, or (if there is no will) the laws of intestacy. The easiest way to ensure it is passed to the other owner is to put in place a life assurance policy. For more information about life insurance please either speak with your adviser or check out our insurances section on our website www.mortgagesavingexperts.com. We can arrange this for you and your adviser will advise you on this during the process of you purchasing your Help to Buy home
It is recommended that where there are two or more owners, they seek independent legal advice about this.

Fees can be paid in a single yearly payment or in monthly instalments.
The Post Sales Help to Buy Agent will collect your fee by direct debit or standing order. They will contact you at least one month before your fees are due, to set up your repayment arrangement. If you do not pay by Direct Debit, you will pay an additional administration charge which is currently £4 per month.
You will also receive a statement each year confirming when your fees are payable. The annual statement will also show any payments you have made once you start paying the fee.

Not without permission from the Post Sales Help to Buy Agent. Further advances must be approved by the Post Sales Help to Buy Agent.
Advances to be used for repaying the equity loans in part (staircasing) or full will usually be welcomed and approved. Advances for other purposes will be considered by the Post Sales Help to Buy Agent on a case by case basis (see question below regarding extending or altering the property).
You may be able to transfer your mortgage to another lender taking part in the scheme following scheme following prior permission from the Post Sales Help to Buy Agent. However, you must ensure your new lender is informed that your home is a Help to Buy property with a second charge entitling the Homes and Communities Agency to a share of the future sale proceeds. You should note that not all lenders will accept a remortgage where there is already an equity loan in place.
The Post Sales Help to Buy Agent may decline permission for further advances or transfer to another lender if after assessment they consider you may be putting yourself in an unsustainable financial position.

Yes, provided that your local council is satisfied that this represents value-for-money and the other funding is compatible with Help to Buy. Any funding provided that must be secured against your home would not be compatible with the Help to Buy scheme.

No. Help to Buy is designed to assist you to move on to or up the housing ladder and must be your only residence. This means you will be expected to sell your current home if moving up the ladder. The disposal of your current home will be verified by your solicitor/conveyancer before you can proceed to exchange contracts on your Help to Buy home.

No. Help to Buy is designed to assist you to move on to or up the housing ladder. If you wish to sublet, you will first have to repay the Help to Buy: Equity Loan assistance. In exceptional circumstances sub-letting may be considered. For example, if you’re a serving member of the Armed Forces staff whose tour of duty requires you to serve away from the area in which you live for a fixed period. In these circumstances you would also require approval from your mortgage lender.

All Help to Buy: equity loan homes are on new build developments where the Homes and Communities Agency has a registration agreement with the house builder. You can only purchase from these house builders. The maximum purchase price is £600,000.

Once you have committed to buying a home (at exchange of contracts) the house builder will have agreed to build the home and keep you informed of progress. If you are unhappy about any delays in construction, you must speak to the house builder. Your solicitor/conveyancer will be able to advise on the house builder’s contractual responsibilities before you agree to the sale. You should check with your house builder that the funding will be available on the date you expect to complete your purchase.

Because Help to Buy: equity loan homes are generally on new developments (and may still be under construction), in common with most new home sales, you will be expected to sort your mortgage and they require you to exchange contracts within one month of paying your reservation fee.
Your moving in date may depend on the time required to complete construction work – this will vary from scheme to scheme. Some Help to Buy applicants may need to wait for a longer period for a home that matches very specific needs whereas others may buy from a development that allows you to move in earlier.

The equity loan is provided by the Homes and Communities Agency and administrated by your local Help to Buy agent. The contribution is secured by a second charge on your property title registered at the Land Registry.

You will own 100% of the property, therefore, it is your responsibility to repair and maintain your home. New homes often come with a guarantee that will cover certain defects for up to 10 years after it was built. This guarantee usually only covers defects in the house. Your solicitor/conveyancer will be able to advise in more detail on this. Typical new homes come with a guarantee called an NHBC.

The Government’s standard rules and procedures for Stamp Duty Land Tax (SDLT) apply to all Help to Buy purchases.
SDLT is payable at the time of purchase, on the full purchase price of the home. That is, the amount paid by you (the first mortgage and any cash contribution) plus the value of the Help to Buy loan.
There is no further SDLT to pay on any ‘staircasing’ repayments or repayment when the home is sold.
You should budget for SDLT on the full open market price of the property when you purchase a Help to Buy home.
Your solicitor and mortgage adviser can advise you how much the stamp Duty will be when before you purchase your new property, so you may budget for this.

No. Part exchange is not available. House builders selling Help to Buy homes cannot offer a part exchange sale.

No. Your main lender’s mortgage must be a repayment loan with interest and capital repaid every month. This ensures you make the Help to Buy purchase on a sound basis and protects the tax payers’ investment in your home.

Yes. You can reserve a new home off plan at any time. However, you need to complete the sale within six months from the exchange of contracts. You also need to ensure that your mortgage offer is valid through to legal completion.

You can remortgage when separated. If you have separated and you are still in contact with the ex-partner then you will need their signature to remortgage with both of you on the property deeds and on the application of the mortgage, however this may be a great time to consider taking them off of the mortgage and ownership of the property so you can remortgage and do a “Transfer of Equity” to remove your ex-partner but they do need to sign documents and get their own legal advice on this matter..

If you have separated and you wish to take off your ex-partner, then you can still do this, but this will involve a “Transfer of Equity”. This transfers the equity into the sole name of the person remortgaging. The ex-partner and the person remortgaging will BOTH needs to sign the Transfer of Equity TR1 form. There will be extra costs you will need to pay the solicitor for doing the “Transfer of Equity”. Solicitors costs to do the “Transfer of Equity” can vary but they can range from £250 to £600 plus VAT approximately. Sometimes the mortgage company doing the remortgage who offer free legal services will not include the Transfer of Equity in this but only charge a few hundred pounds more for this extra service.

This depends completely on what your circumstances are. It depends on whether you have had bad credit in the past or low incomes or different types of income, what you do for a job, what type of property you are buying. In fact, we could be here all day, but every person is different, and everyone has a different financial situation so please Get in Touch if you wish to see what mortgages are available to you.

The reason for this is because there are hundreds of bits of criteria that different lenders take into consideration so best to speak with someone who can let you know.

They look at lots of information in order to assess your mortgage application. They use back office systems that we cannot see like the Hunter system to detect fraud and to assess your application they will look at; what you do for a living, how much your income is, how long you have been doing it, what your credit history is like, how much deposit are you putting down, how much money do you earn, what other finances you have in the background and how well they have been conducted.

All these bits of information will have a set amount of points within the lenders credit scoring system. If you get enough points you will pass their credit score. Simple things like declaring your landline and work telephone numbers all add up points so if they ask the question please fill in the box because it will help you pass each lenders credit score.

Yes, you can get a mortgage if you are self-employed. You need at least 1 year’s worth of accounts or income declared to the Inland Revenue.

Different lenders have different ways of assessing self-employed income. For example, they can either use net profit for sole traders or partnerships or salary and dividends if you are a company director with more than a 25% share-holding, some lenders use the above incomes plus retained profit in the business. As you can see there are several ways of proving your income and different lenders like to see various different things so best to speak to an adviser who can point you in the right direction and get you the best deal available.

There are many lenders out there in the “sub-prime” or “adverse” mortgage market designed to assist people who have had financial difficulties in the past. They are normally only accessible through mortgage brokers. I.e. you cannot access these mortgages yourself, you need to speak with a professional and they need to arrange the mortgage for you.
In all cases the lender will charge you higher rates and the rate depends on how recent or how bad the credit history is.

Most lenders do allow you to transfer the mortgage to a new property. This is called porting. The only stipulation is that you must re-qualify for the entire mortgage all over again. This is great if you are 2 years into a 5 year fixed rate which has Early Repayment Charges. If you transfer or port your mortgage to your new property you do not have to pay any of these early Repayment Charges.

This has many variations and the cost for you individually would vary. The monthly premium for a 30-year-old man, a non-smoker who works in an office earning £30,000 per year who would like £850 of cover per month for 25 years with a deferred period of 3 months would cost him £11.28 (premiums quoted on 06/06/2018).

You make a claim when you have an accident or become sick and you know you will be off work for longer than the deferred period you have set up. For example, if you have a deferred period of one month (so the insurance company does not pay until one month has passed) they then start paying you the monthly benefit after one month either until the policy term ends or you return to work. There are differing lengths of deferred periods typically one, two, three, six or twelve months. The longer the deferred period the lower the monthly premium. There are policies out there which pay out without any deferred period so ask you adviser which one suits you.

It is designed to pay a monthly benefit to someone if they are unable to work because they have an accident or become ill. The policy is designed to pay out either until the term of the policy ends or until you are well enough to return to work. There are several options which you can have when you set the policy up. You can be insured if you are unable to return to your own type of work, “own occupation” or for “any occupation” there are other options and I would recommend you speak with one of our specialists to get the right cover for you.
It is worth noting that the insurers do charge more for particular jobs, such as people who work over 30 feet, por people who drive more than 20,000 miles per year. It is worth while asking our independent advisers as some providers don’t charge more for various types of jobs.

Income protection can be taken by employed and self-employed people

It works by paying your family a monthly income should you die.

It depends on how much income your family may need to live from month to month. You can have this insurance as well as life insurance. You should have enough life insurance to repay all your mortgage and debts like credit cards and loans. You should now work out how much your family spends on bills like food, utilities council tax etc and insure for that amount per month. You can of course insure a higher amount, so your family have extra per month if you wish.

You can write the policy in trust although it will not benefit in Inheritance Tax avoidance benefits. There are benefits of putting the policy in trust such as it does not then form part of your estate so does not need to go through probate therefore the money can be paid straight away rather than waiting for probate.

There are several providers of whole of life cover. To get a quote from the whole market place please get in touch with our experts. There are insurers like Legal and General or Aviva and many more.

Whole of life covers the person insured.

Whole of life cover is a life insurance policy which is designed to pay a cash lump sum to your children, spouse or beneficiaries when the person insured dies, providing the premiums are up to date. It is designed to last your who life if you keep up payments of the monthly premiums until you die.

In our opinion everyone who qualifies for Critical Illness cover should have it. Especially if you have children, if you are single you still may need help if you are recovering from certain conditions.
They are fantastic policies and we would recommend anybody have one.

It depends on what medical conditions you have.

Insurance companies can look at this in different ways. They can make an exclusion for your existing condition covering you for the rest of the defined conditions on that policy that they cover. Insurers can increase the premiums of the policy because of the extra risk to them having to potentially pay out on a successful claim as you may be at a greater risk of contracting the conditions they cover.

Yes. You can have a critical illness only policy.

The best place to look for a policy is with one of our experts because like mortgages we are independent and have the whole of the market to look to provide you with the best and cheapest cover. There are many providers such as Zurich, Aviva, Legal and General, AIG, LV, Vitality Life and many more.

Yes. You can have as many critical illnesses policies as you like. Some insurers have limitations and are more cautious over certain amounts of cover. For example, if you want £750,000 worth of cover then you may have to undergo a medical. This does depend on the provider and what their stipulations are, but you can have more than one critical illness policy.

A critical illness is something defined by insurers and can include illnesses like cancer, heart attacks, stroke, Alzheimer’s or Dementia. Each different insurance company will cover different critical illnesses and will pay out on differing severities of each defined condition.

No. Non-investment life insurance policies have no cash in value at any time.

It depends on what you are looking to protect.

If you are looking to give your family a cash lump sum so they can pay off an Interest Only mortgage, continue to live and pay bills, send your child or children to private school, or for Inheritance Tax Liabilities then generally a Level Term Assurance maybe best. If, however you have a repayment mortgage you may opt for a “Decreasing Term Assurance” which pays a cash lump sum. A decreasing policy is designed to decrease in line with your mortgage providing your interest rate on your mortgage does not increase above a certain percentage, typically 8% or 10% depending on the policy you have chosen.

There are many types of life insurance so why not speak to one of our experts to get the right insurance policy for you

Bridging loans work in many ways. The typical loan will have the interest on the loan roll up onto the balance.
They normally only have a short term for lending, generally no more than 12 months as there must be a “repayment strategy” in place. This means exactly what it says, how do you intend to repay the money. For example, if you have enough money for a deposit on a house you wish to buy but have not sold your own home, you can always get a bridging loan on the property you wish to purchase and then once the property you are selling has been sold you can repay that money. Another way is the option to remortgage the property to repay the bridging loan.

Mortgage Saving Experts has access to many bridging loan lenders. Some of who are Precise mortgages, United Trust Bank and many more, however, like many lenders their criteria and rates do vary massively so get in touch with our expert advisers to see what your options are and some quotations.

Some bridging loans are regulated by the FCA. An example of one would be where you are obtaining a bridging loan where you intend to live in the property. This would be regulated by the FCA.

They are as easy as getting a mortgage but in general some secured loan lenders can lend up to six times your gross annual income on the property you live in, in comparison to a normal mortgage lender who generally do not lend any more than five times your gross annual income.
You will still need to prove your income and provide bank statements, so they are as easy to get as a mortgage. You still must prove you can afford the loan you want to borrow.

One. You can only have one secured loan on a property by way of a second charge. If you need more money there may be other lenders who will refinance what you have and lend you more if you need it or you can potentially borrow more money form the same second charge lender or your first charge mortgage lender.

Secured loans can be used for many different purposes, including home improvements, debt consolidation, buy a new car or for a deposit on buying a new property.

Yes. If you wish to leave your secured loan on your property and you wish to remortgage then all lenders will take into consideration the amount you pay back each month and may not lend you the required amount to remortgage.
If the remortgage lender is offering a better rate than the secured loan it may be more financially viable to remrotgage and include your normal mortgage and your secured loan as well.
Also, a point to make is that the lender you are remortgaging with says you can keep the secured loan where it is they must give permission to that lender for it to be there and they will contact the secured lender to say this. This should not cause any issues though.
I would seek independent financial advice from our experts to be sure this is the correct thing to do.

There are many lenders who offer self-build mortgages. Mostly high street lenders offer these like, Halifax, Nationwide and Barclays are to name a few.

The amount you can borrow does vary from lender to lender but depending on your circumstances you could potentially borrow up to five times you gross annual salary or self-employed income

No more expensive than normal mortgages.

Bad credit mortgages are mortgages for people who have had or current have bad credit. Bad credit can mean a whole host of things like missed payments on credit cards, loans or mortgages. It could be for people who have County Court Judgements (CCJs, Defaults, Debt Management Plans, IVAs, Bankruptcies or even have been repossessed by a lender in the past.
The lenders who offer mortgages to people with these credit problems will:
1. Charge you a higher interest rate than other banks or building societies and
2. Need you to have a bigger deposit or more equity in the property you are buying or remortgaging
3. In most cases the lender will ask you to use an Independent mortgage adviser

Why not contact one of our mortgage experts to see if you are eligible?

Bad mortgage rates are very similar to normal interest rates from most lenders. They are higher rates but what we mean is you can get fixed rate and variable rate or tracker rate mortgages from these lenders and they are explained below
The rates available to these customers are:
1. Fixed rate mortgage – these are rates which are fixed for a given period typically 2, 3 or 5 years. In most cases 2-year fixed rates are lower than 3 years fixed and obviously the 5-year fixed rates are the highest.
2. Variable rates – these rates are set by the lenders themselves and they can vary as and when the lender s=feels it wishes to increase or lower the rate
3. LIBOR tracker rates – LIBOR (the London Inter Banking Offer Rate is the rate at which the banks charge each other to borrow money. It is reviewed every 3 months and can up or down. If your rate tracks this rate and the rate goes up, then your rate and monthly payment will increase as well. If the rate goes down, then your mortgage interest rate and your monthly payment will also go down

Yes. In most cases, if you are married, most lenders will ask you both to be on the mortgage application and buy or remortgage the property in both names.

You can get mortgages of you have had bad credit in the past or indeed have bad credit now.
Normally it means you need a larger deposit if you are buying a home or if you wish to remortgage it means you need to have a certain amount of equity in your property.
The mortgage lenders who lend in this area are called “sub-prime” or “adverse” lenders and they will charge you higher rates than what high street banks or building societies will charge you.
In almost every case you will need to speak with an Independent mortgage adviser to arrange this mortgage for you because many of these lenders do not deal with the public directly.
The amount rate charged will be dependent on how bad your credit is. For example, the worse your credit the more deposit you need and the higher the interest rate charged.
These lenders will not be able to help people in all instances so please get in touch with one of our experts to see if you qualify.

Please use the following link to the governments calculator to find out what discount you can get

Right to Buy calculator

You probably have the Right to Buy if you’re a secure council tenant and have spent at least 3* years as a public-sector tenant. The 3 years doesn’t have to be continuous and you can add together any time you have spent as a public-sector tenant. A public-sector tenant is someone whose landlord is a public body such as a council, housing association or government department. Eligibility criteria also include having no legal issues with debt or any outstanding possession orders. You should be aware that some properties are exempt from Right to Buy.

* In May 2015, the eligibility criteria for Right to Buy was reduced from 5 years public sector tenancy to 3 years.

Yes. The mortgage lender who offers you the mortgage for the Right to Buy will give you a much cheaper interest rate because you will use the full deposit as the deposit which give you cheaper interest rates on the mortgage.
Just note that not all mortgage lenders offer Right to Buy mortgages.

Shared ownership can be obtained for people who have had credit problems or bad credit in the past. It does depend on how bad the bad credit is but if its historic and not too bad, then you may be eligible to get a mortgage for one.
These are great schemes and like Help to Buy in the fact they help people get on the property ladder in times of low income and rising property prices.

Anyone can qualify for Shared Ownership but the best people to talk to first would be a mortgage adviser to see if you can obtain the mortgage in the first place. Then, you need to speak with some housing associations to see if you qualify with them. Typical housing associations who offer shared ownership may be Orbit Housing, Moat Housing or Hyde Housing to name but a few.

Not all Housing associations offer Shared Ownership to every area in the UK so please search online if you wish to find your local Housing Association who offers Shared Ownership in your area.

No. If you can afford to purchase another home you will have to repay the Help to Buy: Equity Loan.
The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.
You cannot rent out your existing home and buy a second home through Help to Buy.
Applicants who make fraudulent claims for Help to Buy assistance will be liable to criminal prosecution. Fraudulent claims will always require immediate repayment of the equity loan.

No. When you buy through the Help to Buy scheme you are not allowed to own any other property, so you will not be able to use it twice

We have done it plenty of times so depending on your financial circumstances yes you can remortgage. At this stage it may be worth mentioning the “Staircasing” scenario. Staircasing means you can potentially borrow more money against the value of the property to buy a larger percentage in your property. If you bought 80% of the property value, then you can potentially buy more of a percentage of the property in increments of 10% If you can afford to I always recommend buying the rest of the share of the property as soon as it is affordable. The reason for this is because the more your property price increases the more equity the Help to Buy guys will get and the bigger the mortgage you will have to get if you wish to staircase in the future.

The simple answer is yes. That’s what the government set up the Help to Buy ISAs for.

Not without permission. Help to Buy is designed to help people move on to or up the housing ladder, you should consider repaying part or all the Homes and Communities Agency’s contribution before making plans for improvements or alterations. This is because the Agency is trying to help future buyers and may use the proceeds of these repayments to make more assistance available. Therefore, consent will not usually be granted for significant home improvements. The Post Sales Help to Buy Agent will act reasonably in considering any application and will review cases of hardship if, for example, property modifications are required for a disability.
When your property is sold in the future, if improvements have been made with the approval of the Post Sales Help to Buy Agent, these will be ignored when your property is valued to work out how much should be repaid to the Agency.

You can set up a Buy to Let mortgage on Interest Only or Repayment (Capital and Interest) the choice is up to you.

Interest on mortgages used to be tax deductible but the rules have recently changed so you will need to get independent tax advice on this subject because it depends on your circumstances and income positioning as to what you can offset for tax purposes and what you cannot.

The minimum deposit required for a buy to let mortgage is 15% but you only have one or two lenders on the market that will do this and the criteria to fit this is hard to achieve.

If you have a 20% deposit, then you will have more lenders available to you.

If you have a 25% deposit, then have most of the Buy to Let lender market open to you and the rates are much lower than if you have a 20% or 15% deposit

If you are a First Time Buyer, then a minimum 25% deposit is required.

Yes, you can get a Buy to Let as a First-time buyer, but the number of lenders you can use are restricted, but it can be done. The criteria on this is very strict as generally they want a 25% deposit and you need to be earning enough money to be able to purchase the property yourself on a residential mortgage. An example of this is if you were earning £25000 and you wished to borrow £100000 then this may be possible but if you earn £25000 and wish to borrow £250000 then the lender will not be able to help.

All mortgages have the same requirements for proof of income, bank statements the same credit search checks etc so in essence they require as much paperwork as a residential mortgage. Due to the recent regulatory procedures lenders now must follow. Buy to Let mortgages are still available in abundance but again the lender you will use or the rate you will pay will depend on many factors such as: Are you buying the property in your own name or as a Limited Company? Do you own four or more Buy to Let properties? Do you currently own the property you live in? Are you a first-time buyer? What type of property do you have i.e. a House of Multiple Occupation? Are you renting to students? Is it a flat? I could go on and on, but a good adviser will know the exact questions to ask you and find a mortgage that’ fits your requirements.
Get in Touch with our advisers to see if you are eligible

Yes. Buy to Let rates are higher than residential mortgage rates. Most costs, fees and charges are normally higher to. With most lenders they offer different rates with different fees, for example; some lenders offer low rates with higher fees and higher rates with lower fees. Which one to choose is easy really, you just work out the monthly payment difference between the two rates and multiply that by the term of the product, let’s say 2 years on a 2-year fixed, then if that figure comes to more than the difference between the arrangement fees then go for the one with the cheaper of the difference between the arrangement or monthly payments over that two-year period. A financial example is below:

The two figures below are not real interest rates and are used ONLY for illustration purposes

The monthly payment below is based on you borrowing £150,000 on repayment over 25 years:

2 year fixed @ 1.49% – Arrangement fee £999 – Valuation fee £0 (free) – Solicitors fees £0 (free) – Monthly payment £599.20


2 yr fixed @ 1.99% – Arrangement fee £0 (none) – Valuation fee £0 (free) – Solicitors fees £0 (free) – Monthly payment £635.05

Therefore, the difference in the arrangement fees between the two rates is £999 but the difference in the monthly payments is £635.05 – £599.20 = £35.85 so multiply this by 24 months (2 years) = £35.85 x 24 = £860.40.

So, £999 is more expensive than £860.40 so it is in fact cheaper to go on the higher rate and pay no arrangement fee in this instance.

As I said please be careful as this is not always the case so check with one of our advisers first to see which is best

Whether you choose to go on a higher or lower rate mortgage does depend on several factors like the amount of mortgage you have, the term of the mortgage and the rates and fees themselves. If you get it wrong, it could cost your thousands so please speak to one of our advisers to ensure you are getting the best deal for you

Most remortgages take around one to two months. Its a quick process really but can take up to around three months depending on your circumstances.
A good adviser will contact their clients three to four months prior to their interest rate increasing to ensure they have enough time for the process to go through.

There are many reasons why people remortgage. The most common reason is because they can get a better deal with a new mortgage lender than they can with their current one. Their current deal is coming to an end and their rate is about to increase to the lenders variable rate which is normally much higher than a new deal offered by either their current lender or another lender. Other reasons to remortgage could be to reduce or increase the term of their mortgage, to raise more money for home improvements, raise money to buy a new property (either to rent or live in), or buy a new car.

If you have had bad credit in the past then there are several lenders out there who would potentially consider you for a remortgage, but it depends on what bad credit you have had i.e. defaults, IVAs, CCJs or bankruptcies. With these mortgages you will need to speak with a mortgage adviser to arrange this for you as most of these lenders do not deal with the public directly.

For more information on bad credit mortgages please see our bad credit mortgages section or Get in Touch to find out more

The costs to remortgage can vary immensely. If you are remortgaging your own residential property through a high street bank, they normally offer you a free valuation and free legal costs, providing you use the lenders own solicitors. Some offer you cashback instead of free legal services and some even offer free valuation, free legal services and cashback.
Lenders may offer a few different rates.

1. A low rate with a higher arrangement fee
2. A slightly higher rate with a lower arrangement fee
3. A higher rate with no arrangement fee at all

So, its best to work out the overall cost of the mortgage when choosing your rate and fees associated with it because if you have a small mortgage i.e. under £100,000 then it may be worth while you paying a higher interest rate and pay no fee whatsoever. Your adviser will be able to tell you this and make a recommendation based on how much mortgage you have and over how long.
The main thing to think is that the arrangement fees can normally be added to the mortgage if the lender allows this and the valuation and legal costs are paid by the lender so in essence you don’t really have any upfront costs.
Just remember that if you add your arrangement fee to your mortgage you will pay interest on it so think carefully before you add it.

If you are remortgaging a buy to let property or if you have had bad credit in the past, then you could potentially pay an arrangement fee, valuation and legal fees. These fees will be explained to you before you decide to proceed with your mortgage so no surprises.

The fees to set up Buy to Let mortgages can be very high so please ask your adviser what the fees will be. There are several buy to let lenders who will offer free valuation and free legal fees but again it depends on the free.

If you have had bad credit in the past it may be advisable to stay with your existing bank if you are with a high street bank because many sub-prime or bad credit mortgage companies will charge a higher rate of interest and you will have to pay valuation and solicitors fees to switch so its worthwhile speaking to your adviser to see if it is worthwhile switching your current mortgage deal with your current lender

Remortgage rates are not normally higher than home moving or purchase rates. They are comparable so no real difference. It is worth noting that it is normally cheaper to remortgage to another lender or even stay with the same lender to switch your existing deal onto a new rate. A mortgage broker can advise you what your best option is when remortgaging. On the rare occasion it is not financially viable to switch deals so just don’t touch your current mortgage

There are many costs when moving and below is a list of some of the costs you may have to pay when moving or buying your first home
1. Arrangement/application fee – a fee charged by the mortgage company to arrange your mortgage
2. Booking fee – a fee charged by the mortgage lender to book your interest rate
3. Valuation fee – a fee charged by the mortgage lender to do a mortgage valuation on the property you are purchasing. Some lenders offer this for free (subject to the value of the property you are purchasing). There are 2 other forms of vaulat4ion you can have which are slightly more in depth than this. These are Homebuyers report or Full Structural Surveys. It is always recommended if you can afford a more in-depth report then please get one done.
4. Solicitors fees and disbursements – These do vary dramatically so please get a quote from a few different solicitors to find out your fees before you start your house moving or re-mortgaging process. If you are re-mortgaging, most high street lenders offer you free legal fees, so they will pay them for you, but, they are not offered in all cases. If you are purchasing or selling a property, then you will normally pay fees to the solicitors to buy and to sell.
5. Stamp Duty – This is payable to the solicitors just prior to exchange of contracts. First Time Buyers do not pay this if purchasing a property of up to £300,000 or for all people buying a property of less than £125,000 (unless it’s a second property i.e. a buy to let property). The more the property value then the more you will pay. Please see our Stamp Duty section to find out how much you could pay
6. Estate agents fees – only payable when you sell a property. Normally these are no sale no fees payable and these are negotiable so please haggle with the agent before signing their agreement
7. Broker fees – some brokers charge fees for their professional services to give you advice and process your mortgage for you. Their fees do differ so please ask your adviser for how much they charge.

This depends on your current circumstances. All mortgages could be available to you, but it is best to get in touch with one of our expert advisers to see what is available for you.

The first person to contact when you are thinking of buying your new home is your mortgage adviser. They will let you know how much you can borrow and whether it is affordable for you. It will not cost you anything to have a chat to see what your options are. Get in touch with us now to find out more.

You can get a mortgage as a first-time buyer if you have had bad credit in the past. The type of rate and who the lender will be, completely depends on several factors like:

1. How much deposit you need. You generally need at least 10% deposit, but in most cases, you need 15%
2. What type of bad credit you have, for example, do you have defaults, CCJs, Bankruptcy, IVA or a Debt Management Plan?
3. When were the bad debts registered and how much were they?

These mortgages are available to First time buyers buying their first home but in short you need a larger deposit and you will pay a higher interest rate than normal.

The amount of interest and the deposit you need depends on how recent and the level of bad credit you have.

First-time buyer mortgages are for people who have never owned a property before in their lifetime.
Some mortgage lenders class first time buyers as people who have never ever owned property before in their life and other mortgage lenders consider first time buyers to be people who has not owned a property for more than 12 months or 2 years.

Different lenders have different criteria but being a First-time buyer. Speak to you adviser if you have any questions regarding this.

If you have a deposit of 20% or more then you can generally borrow up to 5 times your annual salary.
If you have less than a 20% deposit, then you are generally restricted to around 4.5 times your salary although this does vary from lender to lender.

The Help to Buy scheme is a great idea for either single people or couples with lower incomes who cannot quite afford to get on the property ladder by themselves. There are two types of scheme:
1. Equity Loan – this is for new build properties only. The Help to Buy people give you 20% of the property value as a loan, you put in 5% deposit and the rest is made by the way of a mortgage. I think this is a great concept and it used to be called “Shared Equity” but has been jazzed up by the government and called “Equity Loan”
2. Mortgage Guarantee – This is for any property you wish to purchase on the open market i.e. new and second-hand homes. These homes must be approved by the Help to Buy people. You put in 5% of the property value and the government “guarantee” 20% of the property value. This guarantees the lender will get their money back if 1. the property decreases in value and 2. you stop making your mortgage payments and the mortgage lender repossesses your home. If the property value is less than the mortgage owed on the property, the “guarantee” ensures the lender gets all the money back therefore minimising the risk of them being out of pocket. It’s a guarantee for the lender that’s all. We recommend you get independent legal advice regarding this as there could be further financial implications and liabilities on your behalf if things should go wrong.

The maximum property value you could buy through this Help to Buy is £600,000 and you must also NOT own any other properties

Minimum deposit required these days is 5% There are various schemes around made by the government like Help to Buy Equity Loan or Mortgage Guarantee or Shared Ownership.
The thing to remember is the bigger the deposit the better the rate.

No, they are not. Mortgage companies offer First Time Buyers things like cashback or free valuations or some form of incentive like these. The rates are normally the same as other rates for Home Movers i.e. people who currently have mortgages already.

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