Frequently Asked Questions
Q: How much can I borrow?
A: This is subject to your circumstances; different lenders will lend different amounts, however it can be between 3 and 5 times your annual salary, before tax if employed, and after tax if self employed.
Q: What do I need to bring to my first mortgage meeting with you?
A: We will need to see: Proof of income - last 3 months wage slips or accounts if self employed.
If you do not have all of the above, please bring what you do have, and we will discuss any other documents required.
Q: Can you come to me for my mortgage appointment?
A: Yes, we regularly carry out mortgage meetings at our clients' homes, or public places, if you prefer.
Q: How much deposit will I need to get a mortgage?
A: A minimum of 5% is required in the current market. For example, 5% of £100,000 is £5,000. As a general rule, the more deposit you have, the better the mortgage rates available to you. Please note: The number of lenders that accept a 5% deposit is restricted. Most lenders prefer a 10% or 15% deposit or more.
Q: What other fees will I need to pay?
A: There are several fees to consider when moving home or remortgaging. These will vary, depending on the companies you use, and the mortgage amount you borrow. Example costs are below, as a guide only:
| Description | Example Costs From - To |
Solicitor fees | £400 - £800 |
Removal fees | £100 - £300 |
Home Information Pack - HIP (Used to be required when selling but cancelled by Government in June 2010) | £200 - £350 (No longer applicable from June 2010) |
Mortgage arrangement fee (paid to lender and can normally be added to the loan) | £0 - £5,000 |
Mortgage valuation fee (Required when buying and usually paid upfront) | £0 - £500 |
Stamp Duty - based on the purchase price (Required when buying) | £0 £125,000 = 0% £125,001 - £250,000 = 1% (N/A to first time buyer's) £250,001 - £500,000 = 3% £500,001 - £1,000,000 = 4% £1,000,001 + = 5% |
Q: How do I know if I'm a first time buyer?
A: A first time buyer is someone who has never purchased a property in England or Wales before.
Q: Can you recommend a solicitor?
A: Yes, we have access to a database of solicitors, including reviews and can provide you with a quotation.
Q: I have several credit cards, will this stop me getting a mortgage? A: It will affect how much you can borrow, but as long as you are paying the minimum payment, it should not affect you getting a mortgage.
Q: I have CCJ's, can I still get a mortgage?
A: Yes, it may still be possible for you to get a mortgage. This is something we would need to discuss further with you.
Q: I was declared bankrupt 2 years ago. Can I get a mortgage?
A: Yes, it may still be possible for you to get a mortgage, although you must declare your bankruptcy. You would not be able to get a mortgage if you were declared bankrupt in the last 12 months.
Q: How can I check what's on my credit report?
A: There are several companies that will provide you with a credit report. We recommend Experian, as they offer a free 30 day trial. However, you must cancel your subscription within 30 days or you will be charged a monthly fee. www.experian.co.uk
If you have a question that has not been answered in the above, please do not hesitate to call our Hertford office in Hertfordshire (Herts) on 01992 503 162 or 07860 316 314 for free advice. 7 days a week, 9am to 9pm.
Some of the services mentioned are not regulated by the Financial Services Authority.