Your Mortgage Questions Answered

We asked our Instagram followers for their burning questions about Mortgages and this is what they wanted to know:

Q1. If I already own my own home and want to move, how do I find out how much I can spend on my next home?

A1. The way that lenders calculate how much you can borrow for your next home depends on various criteria, including whether you intend to keep or sell your existing home. The criteria will include looking at your income, expenditure and how much deposit you are able to put down on the next home (whether from equity in your existing home or from other sources), to name just a few things. To save you time trawling the High Street and speaking to lots of individual banks or building societies, the best thing to do is to seek advice from one of our Professional  Mortgage Advisers. With access to over 12,000 mortgages from over 90 UK lenders, they can explain what your options are and how best to proceed.

Q2. I don't have the best credit rating. Can you help?

A2. We can certainly ensure you get the right advice, as well as advise you on how much it will cost. Sometimes when clients have a poor credit rating, provided their deposit is sufficient, we can still arrange a mortgage through some of the more well-known lenders. However, we can also arrange mortgages with a lot of niche lenders who aren't on the High Street and whom you may otherwise not think of or be able to approach. That's just another reason why it's advisable to speak to us so we can help.

Q3. What if I have negative equity?

A3. Negative equity is never a pleasant situation to find yourself in and we would need to know what your circumstances and plans are to help you understand how this may affect you.

Q4. How long will it take to process a mortgage?

A4. Automation is playing an increasing part in the underwriting of mortgages. Under normal circumstances, the time it takes for a lender to issue a Mortgage Offer (the point at which the lender has agreed to lend you money) can vary - from between a few minutes to 3 weeks, depending on the complexity of the application. At the moment, however, due to the global pandemic, some lenders are taking several weeks to underwrite mortgages, so the choice of lender is very important if you are looking to move or remortgage quickly. Our Professional Mortgage Advisers know which lenders are likely to respond to your application quickly, saving you time and hassle.

Q5. I have a couple of loans and credit card balances - will this stop me from getting a mortgage?

A5. Not in itself and it depends on how much deposit you have and whether you intend or are able to pay off these debts before applying for a new mortgage. Lenders take your existing debts into consideration when assessing how much they are prepared to lend you and different lenders do this in different ways. What we can do is calculate your potential borrowing with various lenders to see how your existing debts may affect your application and whether some or all of them would need to be cleared in order to get the amount of finance you want.

If you're struggling to get a mortgage or have any mortgage questions you'd like answered, our in-branch professional mortgage advisers can help. Speak to us today for advice.