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What is a Mortgage in Principle?: A Mortgage in Principle is a conditional offer made by a mortgage lender to verify that they will ‘in principle’ give you the mortgage loan you have discussed with them.
Do I Need a Guarantor?: If your lender is concerned about your ability to meet your mortgage commitments, they may ask you to provide a Guarantor.
What Happens If I Want To Move Home?: Moving home is basically the same as moving into your first home, in mortgage terms. You are free to find yourself another mortgage with either your existing lender or another lender – and can shop around for the best deal on the market.
What If I Die Before My Mortgage Is Paid Off?: If you die before your mortgage has been repaid, your estate will face the cost of paying back the outstanding balance. The mortgage will not be written off by the lender, it will have to be paid by the next of kin.
How Do I Switch Mortgages?: Switching mortgages (remortgaging) has been made very easy by the industry, in reaction to the fact that most people remortgage their homes on a regular basis i.e. every 5 years on average.

Do I Need a Guarantor?

If your lender is concerned about your ability to meet your mortgage commitments, they may ask you to provide a Guarantor.

If you can provide someone who will promise to support you financially if you cannot meet the mortgage repayments, your mortgage lender will provide you with the advance loan. This will usually be a blood relative. The lender will then look at the income of the guarantor – and they will need to prove that they can cover any mortgage repayments of their own, in addition to yours.

If the borrower defaults, it is then the responsibility of the guarantor to keep up the repayments. The guarantor should seek independent financial advice to ensure that they fully understand the implications of this. A typical example of this would be a parent acting as a guarantor for a student buying a flat. This is also especially likely to occur if you are buying a 100% mortgage, and are unable to raise a deposit.

How Does A Joint Mortgage Work?

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