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What
is a Mortgage?
A mortgage is a long term loan secured on your home. Please go to the mortgage guide page
for a detailed outlook on mortgages.
How Much can I
borrow?
Most lenders look at over 3 times your gross salary and many now look at an
affordability which takes into account your ingoing and outgoings. Please
look at our Mortgage
Calculator to see how much your monthly payments will be.
In most cases we can obtain an Agreement In Principle with a lender to
confirm how much you are able to borrow and any other requirements need to
complete a mortgage case.
Who has the cheapest
mortgage?
This will depend on your individual requirements, from which we can
determine the lender you could use, the type of scheme you prefer (fixed,
variable, cashback..), how long any special rate lasts for (e.g. fixed for
5 years), whether you go for a low rate with fees or a higher rate with no
fees, redemption penalties, tie in period or not, plus many other factors.
Use one of our forms to make an enquiry or request a call back to discuss
your options.
What is the maximum
period a mortgage can run for?
Most lenders will stop at 35 years or your retirement age. You can extend a
mortgage term beyond retirement age if you can demonstrate that you can
afford the payments. Most lenders are not willing to lend beyond age 75
unless you want an equity release mortgage.
I've heard about
self certification mortgages, can I borrow as much as I like?
No, this is a risky strategy. If you state that your income is greater than
it really is then you are committing mortgage fraud, which is a criminal
offence. Safeguards on maximum borrowings are in place for your good as
well as the lender, if you cannot meet the payments because circumstances change
(e.g. interest rates go up) you could lose your home.
What is APR?
APR stands for Annualised Percentage Rate and is the rate the FSA recommend
you refer to in comparing mortgage deals. The lender will usually quote the
variable/discounted/fixed/tracker (headline) rate and the APR next to it.
The headline rate states the rate of interest you pay per month or per year
on the mortgage, while the APR calculates the total amount of interest that
will be paid over the entire period of the loan. It should also take into
account any charges which the borrower has to pay during the loan
period.
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