List of your most commonly asked questions, with our answers. Also an explanation to some of the commonly used ‘mortgage terms.’
If you have any other questions, or you would like the following further explained, please do not hesitate to call us immediately. We will explain everything you need to know as simply as possible
What is meant by Capital repayment?
Where interest and capital are paid together monthly until, at the end of the term, assuming that all payments have been me on time, the whole loan will be repaid.
What is meant by Interest Only payment?
Where only the interest on the loan borrowed is paid during the mortgage term. You must make other arrangements to repay the loan and the end of the term. e.g.; using an endowment or pension policy, personal equity plan, ISA etc.
Do you accept all types of property?
We provide mortgages on residential properties only. However, we do not accept properties with agricultural restrictions, farms and smallholdings, steel framed properties, ex-local authority flats or maisonettes, flats in blocks with more than 6 floors, any property listed under the Housing Act 1985 and certain types of concrete construction.
What are the minimum and maximum terms?
The minimum term is 5 years and the maximum term is 35 years.
What is meant by Leasehold?
Possession of land or buildings for a term fixed in the lease.
What is meant by Freehold?
Outright ownership of land or property.
What is Title Insurance, why should I consider it?
We have arranged insurance which enables the solicitor to complete without a local search (see below) and without making a number of other enquiries relating to title, reducing the time it takes to complete. The flat fee covers us for the cost of this insurance.
What is a Local Authority Search?
Searches carried out by the solicitor, through the Local Authority, relating to the property to be purchased. A local search only relates to the property itself, and does not provide information about any planned developments in the neighbourhood, except for major roadwork's within 200 metres of the property.
How much can I borrow?
We will lend up to 90% of the purchase price or value of the property (whichever is the lower). You could borrow as little as £10,000 or as much as £1,000,000. Please note there may be a specific maximum which applies to an individual product
How long must I have been employed?
Applicants must normally have been employed with the current employer for a minimum of 3 months. A reference in acceptable format is required, or latest automated P60 and last 3 month’s payslips. Verification is also required for previous employments if the applicant has been with the current employer for less than 6 months