Choosing the right mortgage broker is important, so we’ve put together these answers for you.
A mortgage broker is an intermediary (or middle man) who will arrange your mortgage for you with a mortgage lender.
Brokers know the market well and are up to speed with the latest deals. A mortgage broker can search the market for a mortgage to suit you, including some lenders who you won’t find yourself, and they will advise you on which is the best one for you. Brokers also know which lenders are comfortable with unusual circumstances or irregular income situations.
There are two ways a broker can be paid. They can (but don’t always) charge a fee for advising and arranging your mortgage. When brokers place a mortgage case with a lender they will receive a commission from the lender.
You have been house hunting, have spotted the perfect property and now need to know if you can borrow enough money to snap it up and make it your own. If this sounds familar then, you're probably ready to approach and meet a broker. Alternatively, you might find it useful to have an initial chat with a mortgage broker before you find a property so that you have a rough idea of how much you will be able to borrow, when the time is right.
No, some brokers will be able to offer you a mortgage from all mortgage lenders, whereas others will be limited to a range of mortgages they can look at for you.
Your P60 shows the tax you’ve paid on your salary in the tax year (6 April to 5 April).
If you’re working for your employer on 5 April they must give you a P60. They must provide this by 31 May, on paper or electronically.
You’ll need your P60 to prove how much tax you’ve paid on your salary, eg:
Pick a mortgage type for your circumstances
A first time buyer tends to be someone who hasn’t ever owned a property in the UK or abroad, however some lenders class anyone who hasn’t currently got a mortgage as a first time buyer. The deposit amount needed for your first home, is generally a minimum of 5% of the purchase price - therefore the Loan To Value (LTV) would be 95%.
Remortgaging is basically switching your mortgage from one lender to another. This could be because the initial rate on your current deal has come to an end and you are looking to save money on your monthly repayment or you might be looking to increase your mortgage by releasing some equity from your home - this could be for a number of reasons such as home renovations, a new car, university fees or a deposit on another home.
If you are self employed, some lenders will allow you to access the same mortgage products as everyone else, however you will still need to prove how much you earn. To prove your income many lenders will ask to see your accounts just like they would payslips for an employed person. Lenders will vary on their rules around self employed and contract workers so you may need some help when looking for a lender who will offer you a mortgage to suit your circumstances.
Some people are looking to get mortgages later in life or past retirement age – you may need to downsize as the family has grown up and flown the nest. You might be looking to relocate closer to family or friends. You could be staying put but want to raise funds for a number of reasons such as :- helping out the children / grandchildren get onto the property ladder, with university fees or simply enjoying retirement. The age that lenders are willing to offer mortgages to varies with some having no age restriction at all, typically you will need to be in receipt of pension income so that you can make the repayments on the mortgage.
Buy to let mortgages are specifically designed if you are intending to buy a property to rent out rather than live in it yourself. This could also apply if you’re looking to move but want to keep your existing home as an investment and rent it out, this is also a type of buy to let.
As most people don’t have the money to buy a home outright they need to borrow the money from a bank or building society who take a charge over the property until the loan is repaid and this is called a mortgage.
Yes, you will need to pay some of the money towards your new home and this is called a deposit, the amount needed will vary depending on your individual circumstances.
An LTV stands for loan to value and is the ratio of the amount you would like to borrow in relation to the total cost of the home. This is usually displayed as a percentage.
The amount you can borrow will depend on your individual circumstances but will take into account factors such as how much deposit you have, how much you earn and what credit commitments you pay each month.
There are a variety of different types of mortgage and your broker will be able to help you find ones to suit your individual needs.
There are a few ways to find a professional mortgage broker