Frequently Asked Mortgage Questions

Some of our more frequently asked questions are listed here, if you have any questions that are not covered on this page, please let us know by contacting us by phone on 020 8651 0333 or simply clicking here

How much can I borrow?

This depends on your current income(s) and/or your affordability for purchasing your main residence and varies between Lenders.
If you are buying a property for investment purposes, the rental income governs how much you could borrow. You will normally need to put down a deposit.

What is a Buy-to-Let* (BTL) mortgage?

This is a mortgage for property that will be let by the borrower to other tenants. In other words, it is a mortgage on an investment property.

What is an Exclusive mortgage?

This is a mortgage only available to intermediaries through a specific Packager, in conjunction with a Lender who provides the funding.

What is a Let-to-Buy (LTB) mortgage?

This is a mortgage where the borrowers current property is let to other tenants and the rental income is used to cover the mortgage repayments on a new property, bought as the borrowerrs main residence.

What is an Offset mortgage?

This is a fully flexible mortgage which allows a borrower to keep balances (such as mortgage debt, savings account and current account) in separate accounts, but for the purposes of interest calculation all balances are aggregated. Money in savings or current accounts is set against the mortgage balance and interest is only charged on the outstanding amount, meaning interest payments are reduced.

What is a Self-Certification (SC) mortgage?

This is a mortgage where a borrower states their income and signs a confirmation of their ability to repay the loan, without having to provide evidence, such as accounts, payslips or bank statements.

What is a Tracker mortgage?

This is a variable mortgage that is either above or below the Bank of England's Base Rate by a set percentage within a set period.

What is a Discounted Tracker Rate mortgage?

This is a variable mortgage that is discounted from the Bank of England's Base Rate by a set percentage within a set period.

What is a Fixed Rate mortgage?

This is a mortgage that is charged at a fixed rate within a set period.

What is a Libor Linked mortgage?

This is a variable mortgage that is either above or below the London Inter-Bank Offered Rate by a set percentage within a set period.

What is a Flexible mortgage?

As the name suggests, this is a type of mortgage that offers considerably more flexibility than traditional mortgages.
For example:

Daily or monthly capital rate
Ability to make overpayments at any point of the loan term without an early repayment charge
Defer payments by taking "payment holidays"
Draw back overpayments
Draw down further advances
Underpay without penalty

What does a Cashback mortgage mean?

This is a mortgage in which the Lender refunds a sum of money, either as a percentage of the loan or a flat figure to the borrower upon completion.

What is an Early Repayment Charge (ERC) or Early Redemption Penalty (ERP)?

This is a penalty charged on traditional (ie. non-flexible) mortgages when the loan is repaid in full within a set period. Usually it applies on a pro-rata basis when capital repayments are made outside the agreed monthly repayments.

What does Right to Buy (RTB) mean?

This is when a tenant in a council-owned property purchases it at a discount, the size of which depends on the length of their tenancy.

What is Stamp Duty and how much is payable?

This is a government tax charged on properties with a purchase price in excess of £175,000, Properties are charged:

0% up to £175,000 (until 31/12/2009 inclusive)
1% from £175,000 to £250,000
3% from £250,000 to £500,000
and 4% above £500,000

It is not payable on remortgages.

If you still have some questions or would like my help, click here to contact me now!