Mortgage FAQ

This page is here to answer any mortgage related questions you may have to help you in getting a new mortgage for first time or buyers or remortgage your current house.

Q: How much can I borrow?

A: This depends on how much you earn and how much the property you want to buy is worth. Depending on the property's value Most lenders will loan up to 75% of the property's value and many will go to 90% or 95%. Some will even let you have up to 100% - but you'll pay over the odds for this and will probably be forced to buy mortgage indemnity insurance. Here's a secret: Assuming you have a regular income and clean credit history you are likely to be offered a loan fairly easily.

Q: What is remortgaging?

A: Remortgaging is not about buying a new home but switching your mortgage to another deal to lower your repayment amounts and save money. It is of particular relevance if the value of your home has risen.

Q: What is conveyancing?

A: Conveyancing is the legal work involved in buying and selling a house. It would normally be done either by a solicitor or a licensed conveyancer. As a buyer you need to have one or the other for the sellers/vendors Estate Agent to contact immediately your offer is accepted so try to have one lined up before you get to this stage.

Q: How do you prove your income?

A: If you're employed: The lender will ask for written evidence e.g. payslips and/or your P60 for the past two years. They'll also probably write to your employer asking for confirmation. Some lenders may accept income that's not guaranteed e.g. commission, bonuses etc., though this would be exceptional. If you're self-employed: Traditionally this was more difficult and as a result there are lenders who specialise in the self-employed. However nowadays any lender should be interested in you. You would need to show three years audited accounts. If you haven't been in business long enough then the lender should accept a letter of confirmation from your accountant

Q: How long are mortgages for?

A: The answer is usually 25 years. But this is only because that was the traditional length. You can get a mortgage for any length. 15 or 20 year mortgages are fairly common. The reason why people would want a shorter mortgage term is that - despite seeming to be more expensive, i.e. the monthly payments are higher - at the end of the day you'd be paying a lot less interest over the length of the mortgage.