Tag: mortgage

How COV-ID 19 impacted mortgage products and the market

Posted on | by Neil Alexander

The coronavirus pandemic has changed many aspects of our daily lives, with everyone taking steps and precautions to work together to prevent the spread.

In uncertain times, banks and lenders are examining their products and the level of risk involved. A number of mortgage products have been withdrawn from the market, mainly those with a high loan to value (LTV), that being the percentage of the property’s value that you need as a mortgage.

Mortgages with a high (LTV)- for example a 95% LTV mortgage where you provide 5% of the property’s value and your lender loans the other 95% – are often considered a bigger risk to the lender and would most definitely require a valuation of the property. As these need more human interaction and intervention than mortgages with lower LTVs, making it difficult for lenders to find a risk-free way of continuing these products.

Many lenders found that, with in-person valuations being made impossible with the initial lockdown rules, offering high LTV mortgages became a much higher risk and providing them was less feasible in the current climate. Lots of mortgage deals with an LTV of over 70% offered through many major banks, such as Halifax and Barclays, were temporarily withdrawn. This doesn’t mean it’s impossible to get a higher LTV mortgage, it just means less are being offered and the criteria will most likely be stricter so the lenders can efficiently manage risk and valuation requirements. Not all lenders have chosen to do this so dramatically though, with Nationwide only limiting the cap to 85% LTV for first-time buyers and remortgages. With different lenders taking different approaches to managing the changes presented due to the pandemic, more than ever mortgage brokers are a valuable tool for those seeking to purchase a home, keeping constant track of the different LTV ratios for each lender and helping customers navigate a rapidly changing market.

Improving your chances of getting a mortgage after Covid 19

With the housing market back open – under strict social-distancing guidelines – and valuations able to re-commence, some higher LTV mortgages are beginning to return. With estate agents able to reopen, buyers have been able to look towards viewing properties, removal firms have been able to resume work and the housing market is starting to flow again – however it’s important to remember that social distancing and following guidelines is essential to ensure the purchase and sale of property can be done safely.

It’s been reported by Rightmove that the interest for “home-mover visits” hit 5.2 million, up 4% from the same day last year. Miles Shipside, Rightmove director, said the figures show “clear signs of returning momentum” which means those who have been thinking forward and looking to move home are not alone. With many of us looking to life post-lockdown and making plans for the future, it makes sense that there’s an increase in people wanting to own their own home. Click here to read the article.

If you want to increase your chances of getting a mortgage, luckily there’s plenty you can do to help prepare your application and prove you can be a responsible borrower- even with bad credit.

Also, read our article on the first steps of easing lockdown

Income

Having a stable income is important when applying for a mortgage. Lenders will want to know you’ll be able to meet repayments, and your income is usually how you’ll do this. It’s usually best to have been working in the same job or field for at least 3-6 months before applying for a mortgage, but some lenders can be more flexible. Even with furloughed income, a lender will consider this on a case by case basis.

Electoral Roll

Registering to vote on the electoral role is the simplest, yet one of the most vital steps in preparing your application. Lenders will use data from the electoral roll to verify your identity, making sure your address on your application matches the one you’re registered to vote at.

You can register here:  – and it only usually takes around 5 minutes.

Paperwork

Get your paperwork in order. This could be things like:

  • Proof of income – this could be payslips or your accounts
  • Expenditures – your lender will want to know you can afford your repayments. Any regular outgoings need to be accounted for, check your bank statements for any outgoings that you don’t need and could possibly cancel?
  • Identity – you’ll need to authenticate your identity so make sure you have the relevant documents, usually a passport or driving licence, but other documents can be used.
  • Proof of deposit – you’ll need to verify your deposit, but this can usually be done fairly easily – for example through savings accounts statements
  • Proof of address – e.g. utility bills, council tax statements

Credit Score

Your credit report is how a lender can see if you’re a responsible borrower and plays an important part in your mortgage application. You could still get a mortgage with bad credit (or even no previous credit), but if you’re looking to prepare an application, taking a look at your credit report and working to improve it will increase your chances of being accepted.

  • Use of available credit – the amount of credit available to you and the amount your utilising will have an impact on your credit score. Make sure you’re borrowing responsibly and don’t take out credit you don’t need.
  • Close old and inactive accounts.
  • Check for irregularities – if there’s something you don’t recognise or disagree with you can raise a dispute with the lender or the company providing your credit report.
  • Make sure you pay your bills and any credit repayments on time. Missed payments appear on your credit report and can impact a mortgage application.

If you’ve had to take a payment holiday as a result of financial impacts from the coronavirus epidemic, provided the payment holiday was agreed with your lender this shouldn’t impact your credit score or prevent you from taking out credit in the future. This includes mortgage payment holidays, car finance payment holidays and even some payday loan repayments. However, it is worth noting that payday loans rarely reflect well on a mortgage application and if you’re looking to apply for one, waiting until payday loan use has dropped off your credit file could boost your application.

Save a deposit

As mentioned above, there aren’t as many 95% LTV mortgages available right now so you might need to save for a larger deposit. You should usually aim to save at least 5% of the property’s value but a larger deposit reduces the risk to the lender which increases your chance of being accepted and could give you access to better rates or deals.

We’ve helped 1,000’s of customers get the perfect mortgage – specialising in helping people with bad credit. Get in touch with one of our advisors to find out more.

Speak to an advisor

Taking out a bad credit.mortgage

Posted on | by Neil Alexander

Have you been denied a mortgage because of your credit history? Do you have bad credit and wondering how to get a bad credit.mortgage?

Clever Mortgages can help applying for a bad credit mortgage

Finding a lender who will be willing to offer a ‘bad credit mortgage’ can sometimes be difficult. Here at Clever Mortgages though, we have access to hundreds of different mortgages and could find you a solution, even with a low credit score. We look at each case individually and work with the lenders who could provide you with the best mortgage based on your circumstances.

Click here to apply for a mortgage

Understanding Bad Credit

A person with bad credit is mainly caused by late/missed payments, defaults, CCJs and bankruptcy.  Having no previous credit, is also linked to a low credit score. Both of these can flag to lenders a higher risk to lend – and a reason why it can be more difficult to secure a mortgage.

Our team at Clever Mortgages understand that everyone’s circumstances are different and they may have got into financial difficulty through no fault of their own, for example long-term illness, a breakdown in relationship or losing their job. We assess people’s financial situation and what they can afford to make sure we help to find the right bad credit.mortgage.

Do I have Bad Credit?

If you have missed payments or defaulted on a debt, then your credit score will have been affected and you will have bad credit profile. Other signs of having bad credit include:

  • Being declined for a credit card and loans
  • Being declined a mortgage by a high street lender
  • Declined or increased premiums on insurances
  • Receiving calls from debt collectors
  • Being offered high APRs and low credit limits
  • Not being able to secure a rented property

You can find out your credit score and view your full credit history from a credit file provider such as credit karma, the scores do differ between providers, but it will give you a good guide. The credit report will give you details of who you owe money to, dates of when you have missed payments and a list of companies which have tried to check your credit score.

You might be aware if you have a bad or good credit history, as you have missed payments, been late with payments or not made the payments at all, you may also be pestered with calls from debt collectors.  This will point to your credit score not being as good as it could be.

Speak to a specialist

Why People Fall into Bad Credit

Though people’s cases are usually unique, here are some of the most common reasons people fall into bad credit.

  • Health Challenges: This is one of the (sometimes) unavoidable challenges that could cause bad credit. People who have gone through a rough patch of illnesses that can make it difficult to keep up with payments, especially when they are still in a long period of recovery.
  • Loss of Job: Due to a loss of or reduction in income, you may not be able to meet the agreed credit repayments.  Failure to meet your repayment amounts and deadlines damages your rating. Your repayment history is added to your credit history which lenders will consider deciding whether or not to lend to you.
  • Change in family circumstances: You may have had an addition to the family, which has meant a parent taking time of work, if this has led to a reduction in income, at a time of higher spend, you may find yourself missing payments. Also, a death of a made income earner can have a massive impact on the finance and ability to repay debts
  • Over Committing: You may have taken on too many financial commitments at one time and this has led to unmanageable monthly payments
  • Changes in interest rates: A lender may have increased your interest rate after a special or introductory rate, or you may have breached the terms and they have imposed a higher standard or even penalty rate
  • Divorce or separation: The financial issues that result from divorces can affect your credit. With an immediate change in income and expenditure, it could be that two households are now supported for the same income as a previous one. There could be joint debts and one party may not make the payments as they fall due. This could lead to both credit reports reflecting bad credit. This will continue to go on until the account is completely closed or your name is totally removed from the account.
  • No credit history: Whilst this is not ‘bad credit’. It may come as a surprise that you fall into a similar bracket to it.  You may think, since you’ve had no credit and therefore no chance of bad credit that you are ok to lend to.  However, as you have no proof of paying a debt back on a regular basis, lenders will be cautious in being the first to lend to you.

There are many more reasons people fall into bad credit. At Clever Mortgages, we listen to each individual story, assess the situation, and help to find the right mortgage solution for you.

How Bad Credit affects Mortgage Applications

When a borrower submits an application for a mortgage, the lender will consider many things, the main one being the individuals credit profile and score, this will lead them to a decision as to whether or not to lend.

However, if you have a low score or bad credit, this doesn’t mean you cannot get a mortgage. Clever Mortgages specialise in helping customers every day, achieve their dream of buying a house or refinancing their current property.

Use our mortgage calculator to see our best rates

Please note, individual circumstances may alter results

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Why You Should Use a Mortgage Broker to get a bad credit.mortgage

Mortgage brokers are experts that can provide you as a borrower with many lending options, from high street lenders to those that sit behind or may even be part of a high street lenders.  With different products, loan types and rates, if there is a lending option out there, Clever Mortgages will find it.

Using a mortgage broker will not only increase your chances of getting a bad credit.mortgage, but it can also help you obtain mortgages with reasonable rates. Furthermore, as a mortgage broker has access to most of the UK lenders and the knowledge of what they will offer, it can save you time and effort in finding the right mortgage.

A mortgage broker will also help you deal with all the necessary paperwork involved in obtaining the mortgage.

Trustpilot

Why You Can Trust Us

Clever Mortgages are mortgages brokers you can trust and feel comfortable with. We specialise in finding the right mortgage solution for every individual or family. We do this by reviewing your situation and then helping to find the best bad credit.mortgage for you circumstances.

Here are some of the reasons why we are your ideal bad credit.mortgage broker:

  • We are experts in dealing with bad credit, having a team of people who are knowledgeable about what to do for individuals with bad credit. We have already helped many people obtain the right mortgage for them. We could help you with yours too.
  • We listen and understand. As a bad credit mortgage broker with valuable experience, we know that not all customer’s cases are the same. This is why our team pays close attention to understand your situation and help you get a mortgage that is suitable for your situation
  • We source the most suitable mortgages for all our customers. We work with more than a hundred lenders, some of whom specialise in providing mortgage for people with bad credit.
  • We have a great support team. We understand how taxing getting mortgages—especially bad credit mortgages—can be. For this reason, we provide our customers with all the necessary support to ease the entire process, helping to make the mortgage process a stress-free one.

You could still get that affordable mortgage you desire, even with the bad credit – helping to get your finances back on track.

We will be there with you all the way. Arrange a callback or click below to apply and see how we could help you

Apply for a mortgage

Additional Borrowing on Mortgage

Posted on | by Neil Alexander

One potential reason for remortgaging is to take out additional borrowing on a mortgage to consolidate debt. At Clever Mortgages, we’re experts in helping customers find the right remortgage solution, based on their individual situation, alongside the goals they wish to achieve.

In this guide we focus on a customer who wanted to take out additional borrowing on mortgage to help consolidate their debts. We’ll cover:

  • How we helped our customer with getting a mortgage product that allowed
    additional borrowing – so that he could consolidate debt, and just have one
    manageable monthly payment
  • Getting him a lower rate on his mortgage, and one that was far better than that on his secured loan, meaning what he had to pay out each month was significantly reduced
  • How we consolidated his loans with his additional borrowing on the mortgage, to make his payments more manageable

Additional borrowing on mortgage

With Clever Mortgages, we were able to help Mr P with:

  • Bringing down his mortgage rate – we found a mortgage with a trusted lender that reduced his mortgage rate
  • Consolidating his other debts within his mortgage – meaning his monthly overall repayments were £512 lower
  • Keeping his mortgage term the same – Mr P was able to achieve all this whilst keeping his mortgage term at 22 years. Meaning the £512 per month saving made no difference to the term at all

 BalancePaymentRateTerm
Previous Mortgage£95,279£5262.53%22 years
Previous Secured Loan£43,470£4728%15 Years
Previous Unsecured Loan£5,828£1643 Years
New Mortgage£147,079£6501.45%22 Years

Completed 21/03/2019

Our client came to with the aim of consolidating his mortgage with a secured loan he was paying for each month (with an 8% interest rate). At Clever Mortgages our experts always look at each case individually, with the aim of finding the best solution – and achieving each customer’s goals.

We were delighted to be able to take the hassle away from the remortgage process for Mr P: He just had to tell us some details about himself and his financial situation, and discuss the goals he had for his remortgage. We were able to find him a low fixed rate of 1.45%, making a real impact to his monthly repayments: lowering them from £1,162 to £650 – meaning his saving was an impressive £512 each month!

Arrange a call

We’ve helped 1000s of customers, with finding a remortgage solution that best suits them.

We help customers achieve their remortgage goals, and we know the best lenders and products to look to for each individual situation.
We could give you the best chance of getting on a great remortgage deal, even if you’re:

Needing a mortgage after an IVA
Looking to remortgage with a Debt Management Plan
Worried about other defaults on your credit file
After a bad credit self-employed mortgage

Enquire with us about getting a remortgage with bad credit, and we could:

  • Search for the right deal for you, even if you’ve got a poor credit history – many of the customers we help have found themselves in a bad credit situation, and might have been on a Debt Management Plan or in an IVA.
  • Discuss with you the different options available for meeting your specific goals – we can discuss your individual goals for remortgaging with you, and take the hassle away from the remortgage situation.
  • Make sure your application goes to the best lenders for you – not all lenders offer mortgages to people with a bad credit history, but we know which ones are most likely to say “yes”, and to give you a good rate when they do.

Why should I use a mortgage broker for my remortgage?

  • You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file
  • Brokers can advise on what would improve your chances for achieving a specific mortgage goal – e.g. finding a guarantor or opting for a joint mortgage
  • They can take the hassle of application forms away – talking you through every step, and asking all the right questions

What next?

If you are looking for expert advice on getting a remortgage with bad credit, contact our team today. We are experts in offering solutions to people with bad credit and can help if you need a hand with your next move.

Speak to a broker

Alison Tetlow

Alison is a specialist mortgage broker who has been working for Clever Mortgages for 7 years helping customers with bad credit and has over 25 years experience within the mortgage and housing market.

Call us on: 0800 197 0504

Arrange a call
Paying the Mortgage After Separation

Paying the Mortgage After Separation

Posted on | by Neil Alexander

For some of our customers, paying the mortgage after separation is their key concern. They come to Clever Mortgages, wanting to break their financial ties with a previous partner. In this guide we’ll look at:

  • How we helped our customer with paying the mortgage after separation
  • Making sure he also realised his goal of bringing down his mortgage term – so will become mortgage free sooner
  • Why using a mortgage broker can help make remortgaging a hassle-free process

Paying the mortgage after separation:

With Clever Mortgages, we were able to help Mr H with:

  • Paying the mortgage after separation – making him financially free from his previous partner
  • Bringing down the mortgage term by 9 years – meaning he’ll be mortgage free by the time he retires
  • Consolidating his secured loan – so he only has one monthly payment to make instead of two

 BalancePaymentRateTerm
Current Mortgage£194,976£9413.99%24 Years
Current Secured Loan£26,458£2737.91%24 Years
New Mortgage£222,429£1,4201.89%15 Years

Completed 08/10/2018

Our client had a mortgage on his home with his ex-partner – he wanted to remove her name from the mortgage, and consolidate his secured loan. He had a budget of £1500 per month, which was slightly more than he was paying for the two products at the time – but for the increased payments, he wanted to reduce is mortgage / loan term significantly – so that he would be mortgage-free by the time he retired.

We were delighted to be able to take the hassle away from the remortgage process for Mr H: He just had to tell us some details about himself and his financial situation, and discuss the goals he had for his remortgage.

We found a great deal with a trusted lender, and were able to get the mortgage with him as a sole applicant, meaning he was no longer financially tied to his ex-partner. We were also able to reduce the term of the mortgage by 9 years, all whilst keeping well within his £1500 per month budget.

Speak to an advisor

We’ve helped 1000s of customers, with paying the mortgage after a separation.

We help customers achieve their remortgage goals, and we know the best lenders and products to look to for each individual situation. We could give you the best chance of getting on a great remortgage deal, even if you’re:

  • Needing a mortgage after an IVA
  • Looking to remortgage with a debt management plan
  • Worried about other defaults on your credit file
  • After a bad credit self-employed mortgage

Enquire with us about getting a remortgage with bad credit, and we could:

  • Search for the right deal for you, even if you’ve got a poor credit history – many of the customers we help have found themselves in a bad credit situation, and might have been on a Debt Management Plan or in an IVA.
  • Discuss with you the different options available for meeting your specific goals – we can discuss your individual goals for remortgaging with you, and take the hassle away from the remortgage situation.
  • Make sure your application goes to the best lenders for you – not all lenders offer mortgages to people with a bad credit history, but we know which ones are most likely to say “yes”, and to give you a good rate when they do.

Why should I use a mortgage broker for my remortgage?

  • You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file
  • Brokers can advise on what would improve your chances for achieving a specific mortgage goal – e.g. finding a guarantor or opting for a joint mortgage
  • They can take the hassle of application forms away – talking you through every step, and asking all the right questions

What next?

If you are looking for expert advice on getting a remortgage with bad credit, contact our team today. We are experts in offering solutions to people with bad credit and can help if you need a hand with your next move.

Speak to an advisor
Mortgages For People With Bad Credit

Mortgages For People With Bad Credit

Posted on | by Neil Alexander

If you’ve had an IVA, you might be concerned that you won’t be able to get a remortgage product – especially one that’ll actually reduce your monthly repayments. In this guide we’ll look at:

  • How we helped our customer to get a new mortgage with the same lender
  • Ways Clever Mortgages could help you find a mortgage with poor credit
  • Why use a mortgage broker to help you find a lender who’ll lend to customers with bad credit

How we helped by finding a mortgage with bad credit:

With Clever Mortgages, we were able to help Mr and Mrs T

  • Get a mortgage, even with a poor credit history
  • Secure a lower rate than their current mortgage
  • Bring down their monthly repayments, to help them get back on track

 BalancePaymentRateTerm
Current Mortgage£93,360£803.004.99%13 Years
New Mortgage£93,360£678.562.14%13 Years

Completed 05/06/2019

Our client had been in an IVA, which was completed by the time they came to enquire with us. Their main goal for the remortgage was to bring down their monthly repayments, which was more important to them than reducing the term. Our broker searched and found that the best deal for them was with their current lender – making it easier still to switch.
We were delighted to be able to take the hassle away from the remortgage process for them, and to secure this remortgage deal. We found a great deal, reducing their rate from 4.99% to 2.14%, bringing their monthly repayment down from £803 to £678.56 – meaning they save over £120 every month – over £1450 a year.

It’s true that getting a mortgage with a default can mean your options are more limited – but we can help to find the right remortgage deal for you, that could make a big difference to your monthly outgoings.

Arrange a call

We’ve helped 1000s of customers, just like you with bad credit, to get on the property ladder.

We help customers with bad credit every day, and we know the best lenders and products to look to for each individual situation. We could give you the best chance of getting on a great remortgage deal, even if you’re:

  • Needing a mortgage after an IVA
  • Looking to remortgage with a debt management plan
  • Worried about other defaults on your credit file
  • After a bad credit self-employed mortgage

Enquire with us about getting a remortgage with bad credit, and we could:

  • Search for the right deal for you, even if you’ve got a poor credit history – many of
    the customers we help have found themselves in a bad credit situation, and might
    have been on a Debt Management Plan or in an IVA.
  • Discuss with you the different options available – for instance, you might not have considered using a guarantor or applying for a joint mortgage, we can discuss what might give you the best chance of getting a mortgage on a better rate.
  • Make sure your application goes to the best lenders for you – not all lenders offer mortgages to people with a bad credit history, but we know which ones are most likely to say “yes”, and to give you a good rate when they do.

Why should I use a mortgage broker for my remortgage?

  • Some remortgages for people with bad credit are only available if you go through a mortgage broker – we know the mortgage lenders who accept defaults
  • You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file
  • Brokers can advise on what would improve your chances – e.g. finding a guarantor or opting for a joint mortgage
  • They can take the hassle of application forms away – talking you through every step, and asking all the right questions

What next?

If you are looking for expert advice on getting a remortgage with bad credit, contact our team today. We are experts in offering solutions to people with bad credit and can help if you need a hand with your next move.

Arrange a call

Debt Consolidation Mortgages

Posted on | by Neil Alexander

Getting a new mortgage to consolidate your debts can be a good way to get your finances back on track. In this guide we’ll cover:

  • How we helped a customer to save money every month with a debt consolidation mortgage – even with poor credit history!
  • A little about the remortgage process with us – it’s easier than you might think
  • How we could help you – including why it’s best to go through a mortgage broker

How we helped with a debt consolidation mortgages

With Clever Mortgages,  Mr C was able to:

Reduce his mortgage term Cut the interest rate  Save overall £124.42 per month.

 BalancePaymentRateProductTerm
Current Mortgage£75,263£635.922.29%2 Year Fixed Rate10 Years 9 Months
Current Secured Loan£48,169£637.598.68%Variable10 years 9 months
New Mortgage£123,435£1149.092.24%5 Year Fixed10 Years

Mr C had been with his lender for a fixed rate period, and knew he might be able to save money every month if he consolidated a secured loan he had,  with a new mortgage.

His current rate was at 2.29%, which is similar to the new mortgage, but the key was to incorporate in the secured loan which was on a much more costly rate. We were also able to reduce the term by 9 months and saved £124.42 per month.

Speak to an advisor

What are the benefits of remortgaging for debt consolidation?

A remortgage is when you take out another mortgage on your home to  replace your current mortgage– and we can help you with this, taking all the hassle away from the remortgaging process.

It’s sometimes possible to secure a lower rate, giving you the opportunity to consolidate your debts, whilst saving yourself money every month. Debt consolidation can be a good solution for some mortgage customers – however, it’s not suitable for everyone.

You should always review the total amount payable through consolidation,  not just the immediate savings in terms of a reduced monthly payment. Please be aware that any unsecured debts consolidated within the mortgage, would then be secured against your property.

We’ve helped 1000s of customers to remortgage – and bring their monthly payments down.

Want to remortgage with bad credit?

Worried about bad credit? We work with customers every day who have bad credit but want to remortgage – and we always do what we can to help.

Remortgaging could be easier than you might think – especially when you choose a broker who knows how to get you with the right lender to save you money.

Enquire with us about a remortgage with us, and we could:

A debt consolidation mortgage can help you save money every month – we recently helped Mr C who was nearing the end of his fixed rate deal, to consolidate his secured loan and mortgage into one monthly repayment reduce the mortgage term and save money.

Help get you back on track – being able to consolidate Mr C’s secured loan with a mortgage product meant only having to plan for one monthly payment instead of two, making the overall debt much easier to stay on top of.

Reduce the term of your mortgage – we can often help customers cut years off their mortgage – helping them to become mortgage free far sooner than they thought.

Why should I use a mortgage broker?

You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file

Some mortgages especially for people with bad credit are only available if you go through a mortgage broker

Brokers can advise on what would improve your chances – e.g. finding a guarantor or opting for a joint mortgage

They can take the hassle of application forms away – talking you through every step, and asking all the right questions

What next?

If you are looking for expert advice on remortgaging your property, contact our team today. We will be happy to help advise you on what you on your options.

We are experts in offering solutions to people with bad credit and can help you if you need a helping hand with your next move.

Get a call from a mortgage advisor at a time to suit you

Speak to an advisor
Multi-coloured blocks with icons on them

Mortgage jargon buster

Posted on | by Neil Alexander

We know that getting a mortgage can be confusing. There are lots of things to consider and a lot of terminologies that you may not have heard before. Here we have tried to clear up the confusion by explaining in simple terms what these different terms mean.

Mortgage-related terms

Mortgage broker

A mortgage broker is an adviser who can arrange a mortgage between borrowers and lenders. Clever Mortgages are a mortgage broker who can help source the right mortgage for you.

Mortgage lender

The financial institution who lends the mortgage funds to a borrower in order to buy their home. We have a comprehensive range of lenders to help get you a mortgage whatever your situation.

LTV (Loan to Value)

A ratio made up of the size of your mortgage in relation to how much your property’s worth. People who are borrowing 60% or less are likely to get the best deals.

APR (Annual Percentage Rate)

The overall cost of your mortgage per year, including interest and associated fees. This amount will vary from lender to lender.

AIP (Agreement in Principle)

This is a document that you will receive from a mortgage lender to confirm that you can borrow a certain amount from them. This does not mean your mortgage has been officially approved but you can use this to show sellers that you can afford the property.

Mortgage valuations

A mortgage valuation report can give you a rough indication of how much a property is worth. They take place before your mortgage is approved to give the lender enough information on whether the property is safe to lend on. This is not the same as a homeowner or structural survey.

Surveys

A survey is a more in-depth version of a valuation, carried out by a qualified surveyor before purchasing a property. They will inspect the property to make you aware of any structural problems, major repairs or potential issues. These can help you to avoid any expensive surprises after you’ve bought the property.

Equity

The total amount of the property you own outright without considering the remaining mortgage. This includes the deposit amount, the amount of the mortgage you have paid off and any value gained on the property during ownership.

Negative equity

A property is in negative equity when the mortgage is worth more than the house is worth. This is usually caused by falling property prices.

Stamp duty

Stamp duty land tax (SDLT) is a lump-sum tax that must be paid by anyone purchasing a property in the UK above £125,000. For more information on stamp duty, please see the Gov.uk website.

Base rate

This is the interest rate set by the Bank of England for lending to other banks. This rate is used as a benchmark for interest rates in general.

SVR (Standard Variable Rate)

This is the go to rate that lenders will put you on once you’re at the end of an introductory fixed, tracker or discounted deal. Each lender will have their own SVR rate and this usually fluctuates in line with the Bank of England’s base rate but may be higher.

Mortgage arrears

This is a legal term for overdue or missed payments on your mortgage. This can lead to your home being repossessed if you don’t agree to a term with your lender to pay off the arrears as soon as possible.

Conveyancing

The legal work that takes place when you buy or sell a property. Your conveyancer will take care of transferring the cash to buy your house as well as dealing with the Land Registry.

ERC (Early Repayment Charge)

If you pay off your mortgage early or make overpayments that are more than your set limit, then you might incur an ERC as set out in your contract terms.

Arrangement fee

This is an administration charge that you pay to your lender in order to set up your mortgage. You can usually choose to pay this amount in full or add it onto your mortgage.

Booking fee

Also known as an application or reservation fee; a booking fee is required to reserve a mortgage deal. This amount is non-refundable and you’ll be expected to pay upfront when you’ve submitted your application.

Mortgage Types

Fixed rate

A fixed rate is where your mortgage stays at the same rate for a period of time. This means that you can be exactly sure what you will pay from each month to the next.

Variable rate mortgage

This is where your charges are in line with the mortgage lenders SVR. This means that some months you could be paying more whilst other months you could be paying much less.

Tracker mortgage

A tracker mortgage is a type of variable rate mortgage but most commonly tracks the movement of the Bank of England’s base rate. The amount you will be charged each month will be in line with this amount.

Capped mortgage

If you choose a mortgage with a capped rate then the interest rate will never exceed the cap set, regardless of any changes to the Bank of England base rate.

Offset mortgage

These mortgage types link to your savings account as well as your current account. This allows you to make overpayments each month, allowing you to pay your mortgage off more quickly. These types of mortgages are most suitable for high-earners who are able to save each month.

Interest-only mortgage

Interest-only mortgages allow you to only pay off the interest on the amount you borrow. At the end of your mortgage term, you use your savings or investments to pay off the rest of the amount.

Subprime mortgages

Subprime mortgages are for people who have a poor credit history. Higher interest rates are usually associated with these types of mortgages as conventional mortgages are seen as high risk as the customer is more likely to default on the loan.