Frequently Asked Questions About Mortgages

Getting started with you mortgage

• Hot Topics

  How Does A Joint Mortgage Work?

  When you decide to get a mortgage with another person – both your incomes can be taken into account. The general rule is that you can borrow three times the first income plus half of the second income, or two-and-a-half times the joint income.

  Interest Rates Explained

  APR is used to identify the true cost of borrowing and to provide you with a method of comparing the true costs of a loan.

  What is a Fixed Rate Mortgage?

  A loan where the initial payments are based on a certain interest rate for a stated period and the rate payable will not change during that period regardless of changes in the lender's standard variable rate.

  What are Variable Rate Mortgages?

  A variable rate mortgage is when you pay a standard variable rate (SVR) that changes in line with the Bank of England's base rate. The SVR is usually between 2% and 4% higher than the Bank of England's base rate, but this will vary from lender to lender.

  What Are Flexible Mortgages?

  Generally, people rebroke their mortgage deal once every five or six years. They also may change their mortgage lender at the end of a discounted or fixed period. Chances are in that in the time between their last remortgage, the mortgage market will have changed a great deal.

  What exactly is a mortgage?
• Mortgages explained
• What will the initial costs of buying a house be
• How much can I afford?
• What is a loan to value (LTV) ratio?
• Income Multiples
• How much deposit do I need?
• What happens during the mortgage application process?
• What is a mortgage in principle ?
• How long are mortgages for ?
• How does a joint mortgage work ?
• How much is the valuation fee
• Will I have to pay an arrangement fee and how much will it be ?
• What is a Mortgage Indemnity Guarantee (MIG) and will I have to pay it?
• What is conveyancing ?
• Do I need a guarantor ?
• How do I prove my income
• No proof of income
• What happens if I am self-employed ?
• Interest rates explained
• How is interest calculated on a mortgage
• What happens if interest rates change ?
• Can I get a mortgage with a group of friends ?
• Do in need mortgage payment protection insurance ?
• Do I need home and contents insurance ?
• Unusual properties
• Company directors
• What happens if I am refused a mortgage ?
• Where can I buy a mortgage ?
• Mortgage glossary

After you've got your mortgage

• Repaying mortgages
• Can I take a break from making my mortgage repayments ?
• Can I repay my mortgage early ?
• What happens if I want to move home ?
• What happens if we have a joint mortgage but one of us wants to leave ?
• What happens if I can't keep up my repayments ?
• Is there any way I can lower my monthly repayments without switching mortgages ?
• What happens if there's a shortfall at the end of my mortgage term ?
• What if I die before my mortgage is paid off ?
• What are redemption penalties ?

Switching Mortgages (Remortgaging)

• What is a remortgage ?
• How do I know if I should switch mortgages ?
• How do I switch mortgages ?
• Refinance mortgages

Specific types of mortgage

• First time buyer mortgage
• 100% Mortgages
• Cash Back Mortgages
• Fixed Rate Mortgages
• Variable Rate Mortgages
• Discounted rate mortgages
• Capped Mortgages
• Base Rate Tracker Mortgages
• Self Certification Mortgages
• Isa Mortgages
• Flexible Mortgages
• Low Setup Cost Mortgages
• Equity Release Mortgages
• Buy to Let Mortgages
• Right to Buy Mortgages
• Commercial Mortgages

Mortgages and Credit Problems

• I have been turned down for a loan or credit cards, will I still be able to get a mortgage ?
• Previously declined
• What if I have bad credit ?
• Adverse credit
• Credit problems
• Mortgage arrears
• Bank defaults
• CCJ's - County Court Judgements
• Bankruptcy orders
• Repossession orders