FAQs
Have questions about mortgages? Don’t hesitate to reach out to us. PLS Financial Services have expert mortgage advisers who are ready to provide you with personalised advice tailored to your unique circumstances.
Call 01728 448 276 during our office hours of Mon-Fri 9am-5pm
Yes, you can get a mortgage if you have irregular income, but the reason for the irregularity is important. Here are a few guidelines:
As an employed person with a permanent contract, mortgage lenders will verify your annual basic salary and use an average of any regular overtime, commission or bonus (usually for 3 months).
If you have no minimum guaranteed working hours, the average used will depend on the lender and all will require a minimum employment history of 12 months in the same job role.
If you are self-employed, mortgage lenders will require a minimum 12 months trading and one years accounts. The self-employed income declared for tax purposes on an SA302/tax calculation will be used. Most mortgage lenders will use an average of the latest 2 years self-employed figures or the latest years if it is lower.
If you are a limited company director or have a large shareholding you will also be treated as self-employed. Similar to above, the lenders will require a minimum 12 months trading and one years accounts. The self-employed income being salary + dividends or *net profit* declared for tax purposes on your SA302/tax calculation and finalised certified company accounts can be used.
For more information regarding your own individual circumstance, speak to a mortgage adviser today.
An individuals credit score plays a crucial role in determining your ability to get a mortgage. This is due to mainstream lenders using your credit score, among other factors, to assess your creditworthiness and the level of risk associated with lending you money for a mortgage. However, it is important to note, mortgage lenders will have their own in-house scoring systems you will need to pass and this is when our experience and knowledge will help massively.
Here’s how your credit score impacts your ability to get a mortgage:
To improve your chances of getting a mortgage with favourable terms, it’s essential to maintain a good credit score. You can do this by:
Before applying for a mortgage, it’s a good idea to review your credit report for accuracy and address any discrepancies or negative marks.
The good news is even with a poor credit score or adverse credit, there are specialist mortgage lenders who can look to help and do not credit score. Instead, will have set lending criteria you will need to meet, which is why the credit report is important in this situation.
There are several types of mortgage interest rates available to borrowers. Each type offers different advantages and considerations. The main types of mortgage interest rates include:
Each type of mortgage interest rate has its pros and cons, and the most suitable option for you will depend on your individual financial circumstances, risk tolerance, and preferences for stability or flexibility. This is why it is important to speak to a mortgage adviser at PLS Financial Services today.
An Agreement in Principle (AIP) and a Formal Mortgage Offer are two distinct stages in the mortgage application process, each serving a different purpose. Let’s understand the difference between them:
1. Mortgage Agreement in Principle (AIP):
An Agreement in Principle (AIP) is also commonly known as a Decision in Principle (DIP) or a Mortgage in Principle (MIP). It is a preliminary indication from a lender of how much they may be willing to lend you based on an initial assessment of your financial situation. The AIP helps you get an idea of your borrowing potential before making an offer on a property.
To obtain an AIP, you typically provide basic financial information to the lender, such as your income, employment status, and existing debts. The lender then performs a soft credit check (a check that does not impact your credit score) to assess your creditworthiness. Based on this initial assessment, the lender offers an indication of the amount they may be willing to lend you.
An AIP does not guarantee that you will receive a formal mortgage offer. It is only an indication of the lender’s potential willingness to lend, subject to further verification and a full mortgage application.
2. Formal Mortgage Offer:
A formal mortgage offer is issued by the lender once they have completed a comprehensive assessment of your application. It sets out the specific terms and conditions of the mortgage, including the loan amount, interest rate, repayment schedule, and any special conditions.
To receive a formal mortgage offer, you must submit a complete mortgage application to the lender. The lender will then conduct a more detailed assessment, including a thorough credit check, verification of your income and financial documentation, and other relevant checks. Once they are satisfied with your application and all necessary checks, they issue the formal mortgage offer.
A mortgage offer or principle is not a legally binding contract. The lender still has the right to withdraw the offer, although this is rare. It is important to read the offer carefully and understand the conditions stated. Your solicitor will sort out all of the legal steps involved in purchasing a new property, known as conveyancing – see our blog on the conveyancing process here .
The process of buying a house becomes legally binding at the exchange of contracts stage. This is when both the buyer and seller are legally committed to the sale. After contracts are exchanged, the seller must sell, and the buyer must buy at the agreed price. If either party pulls out after this point, they could face serious legal consequences.
Before this stage, either party can withdraw from the sale without any major legal implications. However, once contracts are exchanged, pulling out of the transaction could result in the loss of the deposit, and the party in breach may be sued.
It’s important to note that the exchange of contracts is usually handled by solicitors and often takes place a few weeks before completion. The completion date, which is when the property officially changes ownership and the money is transferred, is usually set for a specific date during the exchange of contracts.
Residential:
The amount you can borrow for a mortgage depends on several factors, including your income, credit history, monthly expenses, and the lender’s criteria. Typically, lenders use an affordability assessment to determine the maximum loan amount they can offer you. This assessment ensures that you can comfortably manage mortgage repayments without undue financial strain.
Most lenders consider a loan-to-income (LTI) ratio of up to 4.5. This means that they will typically lend up to 4.5 times your gross annual income. However, some lenders may offer higher LTI ratios for certain borrowers or circumstances.
To get a rough idea of how much you might be able to borrow, you can follow these steps:
For example, if your gross annual income is £40,000, the rough estimate of the maximum mortgage you might be able to borrow would be 40,000 x 4.5 = £180,000.
It’s important to note that this is a simplified calculation, and actual borrowing capacity can vary significantly based on individual circumstances, such as credit score, existing debts, monthly expenses, and lender policies. Additionally, some lenders may consider other factors, such as bonuses, overtime, or self-employed income, when calculating your borrowing capacity.
Buy-to-Let:
For buy-to-let mortgages, stress testing is carried out, but with additional considerations. Lenders typically assess rental income as well as the borrower’s personal income and will use the rental income to determine the maximum borrowing amount available. The stress test usually includes verifying that the rental income can cover the mortgage payments even if interest rates increase. The required rental coverage varies, but lenders may often require rental income to be around 125% to 145% of the mortgage payments.
When buying a Shared Ownership property, you usually have two options for paying Stamp Duty: pay it all upfront or pay it in stages. The amount you pay depends on the property’s market value.
If you choose to pay in stages, you’ll pay the full Stamp Duty amount on anything due on the first purchase of a property share. For subsequent purchases, you’ll only pay Stamp Duty on the share of the property you’re buying. However, you won’t need to pay any additional Stamp Duty until you own more than 80% of the property.
All Shared Ownership properties are leasehold, which means you have the right to live in the property for a specified period of time, typically 99 years or longer.
The majority of Shared Ownership properties are owned by housing associations and local authorities. In exceptional cases, they may be available from other organizations as well.
Under the government’s Shared Ownership Scheme, you can typically purchase a share of between 25% and 75% of the property’s value. This means that you will own a portion of the property, while the remaining share is owned by a housing association or local authority. You will then pay rent on the portion that you do not own.
If you want to own the entire property, you can then “staircase” your share by purchasing additional shares from the housing association or local authority. If you want to own a share of more than 75% in your home, you must buy the property outright.
To participate in the Shared Ownership scheme, you must purchase at least a 25% share of the property’s value. You can then gradually increase your ownership percentage by purchasing more shares from the approved qualifying body, a process known as staircasing. This allows you to own a larger share of the property and reduce your rent payments over time.
The process of selling a shared ownership property commences with the leaseholder informing the housing association of their desire to sell. An independent RICS surveyor is then engaged to conduct a valuation of the property, establishing its current market value.
While the housing association initiates the marketing efforts to attract their pool of potential buyers, the leaseholder maintains the option to market the property independently through estate agents or online platforms. Once a buyer is secured, the housing association scrutinizes the offer against the valuation provided by the RICS surveyor. If no match is found, the leaseholder is empowered to sell to the highest bidder.
No, it is not as they will use the right to buy discount towards the deposit. However, it depends on the policy of each specific mortgage lender, which may or may not ask you for a cash deposit amount.
Yes, it is possible to apply jointly for a right-to-buy scheme but only if both individuals are named on the right to buy papers issued from the council.
You must be a secure tenant and been a public sector tenant for at least 3 years. The Right to Buy scheme helps eligible council and housing association tenants in England to buy their home with a discount of up to £127,900 (£96,000 outside London).
The Right to Buy was introduced in 1980. It means that secure tenants can buy their home at a discount to the full market value. Your discount is based on the number of years you have spent as a public sector tenant.
Yes, it is possible for a first-time buyer to become a buy-to-let landlord. However, obtaining a buy-to-let mortgage as a first-time buyer can sometimes be more challenging compared to a first-time buyer applying for a standard residential mortgage.
Here are some key points to consider:
Please note that if your first property isn’t one that you will live in yourself, you won’t qualify for first-time buyer relief.
When buying a buy-to-let property you will likely pay more Stamp Duty. In 2016 Government brought in changes to the rates of Stamp Duty.
Anyone purchasing an additional property will have an extra surcharge of 3% added to the current Stamp Duty Rates. To calculate how much Stamp Duty you may need to pay, try our Stamp Duty Calculator.
For those buy-to-let investors who find themselves with a history of bad credit, this could seem impossible. The good news is that there are lenders in the market that will look to assist these potential investors.
The monthly payment is crucial for calculating the property’s profit. It’s vital to have the right mortgage for your needs. Many buy-to-let mortgages have an end date when the loan switches to a higher lender rate. Borrowers often explore new lenders or consider switching.
We also check if your current lender can offer a better deal. We recommend what suits your needs, but there’s no guarantee of continuous rental income covering the mortgage. Staying with your current lender may have benefits, like no extra checks or paperwork, and possibly no need for property valuation or solicitor fees.
The Deposit Unlock Scheme is available on new-build homes on selected plots from participating house builders.
You cannot purchase a shared-ownership home with a Deposit Unlock mortgage, as it’s a standalone scheme for new-build homes purchased with a 95% mortgage.
Some developers don’t include studio flats and one-bedroom apartments as part of the scheme, so it’s best to check the developer’s website.
Deposit Unlock isn’t much different from using a regular 95% mortgage. You’ll pay a 5% deposit and take out a mortgage for the remaining 95%.
However, the developer you’re buying from will fund mortgage indemnity insurance to reduce the risk to the lender, therefore, deals available could be more favourable.
The scheme can be used to buy a house or flat on selected developments, but cannot be used to get a mortgage on a studio or one-bedroom flat.
You do not need to be a first-time buyer, so existing homeowners looking to move into a new build are eligible. However, you cannot own any other property (like a buy to let) upon completion of the sale.
You will still need a minimum deposit of 5% to secure a mortgage on a First Homes Scheme property. The discount of 30% (or 50% in some cases) just means that your required deposit will be significantly smaller.
The only drawback to the First Homes Scheme is that the same discount will still apply when you try to sell the property. Therefore, if house prices rise, the profit you make from a future sale will be reduced. This is because the same 30-50% discount will apply to the new house value – it won’t be the same amount of money off as when you purchased it.
Example: If you buy a house with a value of £250,000 and the scheme’s discount in that area is 30%, you would only need to pay £175,000. This is a discount of £75,000. If you later sold the house at a value of £300,000, the new buyer’s discount would be £90,000 – 30% of the new value.
This means that you’re still making profit, though not as much. This is something to bear in mind when you’re considering how to build equity and how long you want to live in your first home.
To be eligible for the First Homes Scheme, you must be a first-time buyer. If you are making a purchase with a partner, they must be a first-time buyer too. You also must have a combined household income of £80,000 or less, or £90,000 if you live in London.
These are the firm criteria for eligibility. However, the scheme is designed to help people get on the property ladder in their local area. Therefore, local councils participating in the scheme are being encouraged to prioritise buyers with local connections, particularly key workers. If this applies to you, you should find it quicker and/or easier to be approved for the scheme.
At the moment, the scheme is only in place in England. Similar schemes are under consideration for other parts of the UK.
The price cap for properties being sold under the First Homes Scheme is £250,000. The cap rises to £420,000 if the property is in the Greater London area.
Yes, it is possible to repay a secured loan in full by remortgaging it back into one mortgage. It is important to seek advice from a mortgage adviser to determine what would be suitable in each individuals own circumstance.
The time it takes to get a secured loan can vary depending on the lender and the specifics of the case. A more straightforward secured loan can take around 4-6 weeks to get approved from the date of application. The process involves several checks, including on the asset that will secure the loan, and a property valuation from your mortgage provider. However, this timeframe can be reduced to as little as 1 week in some circumstances.
The typical interest rate on a secured loan can vary widely depending on the lender and the borrower’s creditworthiness. Annual percentage rates (APRs) for secured loans are usually lower than for unsecured loans because secured financing poses less risk to the lender.
However, Annual percentage rates (APRs) for secured loans are usually higher than a mortgage because it is a “second charge” and in the event of default/repossession, it would be repaid, second to a mortgage, therefore, it is a greater risk for lenders.
Yes, it is possible to get a secured loan even if you have bad credit. However, your options may be limited. Each lender has their own criteria, and some specialise in lending to those with a less-than-perfect credit history, however, the interest rate and the fees involved will be sustainably higher.
Yes, but as a foreign national it isn’t as straightforward as if you had indefinite leave to remain in the UK. The requirements can differ depending on the type of visa you have, and lenders will consider additional factors such as how long you’ve been in the UK and the length of time left on your visa. It is also subject to passing mortgages lenders in-house credit scoring systems.
You don’t need indefinite leave to remain to secure a mortgage, though if you do and/or you’re on a spousal visa, you should find more options open to you.
Yes, although the selection of lenders may be somewhat limited, there are specialist lenders who are open to considering applicants with a short remaining visa duration or those who have recently commenced employment in the country.
However, the flip side is that the mortgage deals available may not be as appealing. They could potentially carry higher interest rates, and there might be a requirement for a more substantial deposit (potentially up to 25%).
A history of bad credit may impact any mortgage application however the level of influence will depend on the severity of the financial difficulties, the length of time you have been residing in the UK and the impact these issues have had on your credit score.
The type of visa you’re on can have a huge part to play in your mortgage eligibility and the criteria the lender will set.
Here’s a list of the types of visas that may be acceptable to mortgage lenders.
These are some of the pros and cons of interest-only mortgages:
Pros:
Cons:
If you are considering an interest-only mortgage, it is important to speak to a mortgage adviser who can help you understand the risks and benefits and ensure you have a suitable repayment plan in place.
With an interest-only mortgage, your monthly repayments will be less, but your repayments won’t help you reduce your debt. This makes interest-only mortgages risky, as they require borrowers to save or invest enough during the course of their mortgage term to be able to pay off the full amount at the end. For this reason, interest-only deals are only really suitable for those that have a lot of equity and have a repayment plan to pay the capital lump sum back.
Before the 2008 financial crash, interest-only mortgages were more common, but due to the risks involved it is now very rare to get an interest-only mortgage for a residential property, However, if you are looking for a buy-to-let mortgage, these are often taken out on an interest-only basis.
The eligibility requirements for an interest-only mortgage can vary widely from lender to lender. However, here are some general criteria that you might need to meet:
Yes, most lenders allow customers to switch their mortgage from an interest-only to a repayment basis within the term of the mortgage. It may also be possible to switch to a so-called “part-and-part” basis, where part of the mortgage remains on interest-only, and part operates on a repayment basis.
If you are thinking about taking out a new interest-only mortgage, then many lenders in the current market would not consider the future sale of the property as a suitable repayment plan. These lenders would still need to be satisfied that you have an alternative means of repaying the loan other than the property itself.
However, some lenders are agreeable to the mortgaged property being used as the repayment vehicle. This will be subject to the loan to value and other elements of your circumstances meeting their criteria.
If you don’t have a plan to repay the full amount of the loan by the end of the term, you may have to sell your property or refinance the mortgage. If you’re unable to do either of these things, you may have to default on the loan.
Interest rates tend to be higher on bridging loans as you are paying for the privilege of borrowing a lot of money quickly. Because bridging loans tend to be short term, interest is charged daily rather than annually.
There are three ways that the interest on a bridging loan is charged;
Bridging loans are usually approved quickly. They usually take around 5-21 days to be approved, although in some cases it can happen faster than this.
Bridging can be a good idea if you need to borrow money quickly and flexibly to keep your property transaction on track. But bridging loans are secured against property and you’ll typically pay higher rates and fees.
Yes. It is possible to use a bridging loan if you’re buying a Buy to Let property.
A home reversion plan is a scheme that enables you to part with your property, or a portion of it, at a value below the market rate, in return for a lump sum that is exempt from tax. This arrangement allows you to reside in the property without paying rent or for a nominal rent, ensuring that you can live in your property for the remainder of your life without any rent payments, provided you agree to maintain and insure it. There are no monthly repayments to be made, and upon your death, the property is sold and the lender receives their share of the percentage agreed at the start of the contract.
Typically, you can sell between 20% and 60% of the market value of your home, and it is available to those who are over 65. The amount you receive will depend on the percentage sold, your age, and the home reversion provider.
A home reversion plan also allows you to stay in your home until you die or need to go into long term care. As you are selling a share of your home, there are no interest payments to consider. This makes it simpler to plan for the future as you will know exactly what portion is being left as inheritance.
However, a home reversion plan, once committed to, cannot be easily undone – as you are selling part of your property. It is crucial to discuss this further with one of the professional equity release advisers at our trusted partners.
Some disadvantages of equity release are high overall cost due to fixed interest rates that accumulate over time, potentially expensive early repayment charges, losing eligibility for means-tested state benefits and grants, reducing the value of your home and the inheritance you can leave, missing out on housing price appreciation, and making the process of leaving your property to beneficiaries more difficult.
The money you unlock through property equity release is tax-free. You can spend it in a variety of ways, such as repaying your existing mortgage, supporting your loved ones, making home improvements, or generally boosting your retirement finances.
Yes. Equity release advice and plans are fully regulated by the Financial Conduct Authority (FCA).
If you take out a lifetime mortgage you will remain the owner of your home. The deeds remain in your name and you also have the right to remain in your property for as long as you live.
Most lenders ask for at least two years’ worth of accounts in order to consider a self-employed applicant, however, there are lenders who will consider an application with only 12 months trading – 1 years accounts.
An SA302 form is your Self-Assessment tax calculation, provided by HM Revenue & Customs. An SA302, based on your HMRC Self-Assessment tax return, details:
It’s common for lenders to accept SA302 forms instead of full accounts as proof of income for the self-employed.
Lenders vary considerably in how they calculate an income figure for self-employed mortgage applicants. Some may use your income from the previous year. Others use an average of your income from the past two or three years.
Lenders have different criteria for considering direct income, salary, limited company director dividends, and retained profits. They employ various methods for income calculation, but once they establish it, standard lender criteria determine your borrowing limit.
Using retained business profits for a mortgage can be challenging. Most lenders calculate affordability based on salary and dividends.
There a few, mostly specialist lenders may consider an average of the latest 2 years retained profits, potentially increasing borrowing capacity – especially if you keep dividends retained in the company.
Yes, you will need planning permission from your local authority before you can start building a new home.
Yes, once the property is complete and habitable, it is usually possible to remortgage to a standard residential mortgage.
Yes, a deposit is typically required for a self-build mortgage. The amount can vary but is often larger than for a standard mortgage.
Yes, once the house is completed and meets the lender’s criteria, you may be able to switch to a mortgage with better terms.
It can be more challenging to get a self-build mortgage than a standard mortgage because of the additional risks involved. Lenders may require a larger deposit and the interest rates may be higher.
Yes, it is indeed possible to secure a mortgage even with a bad credit history. However, it’s important to note that your options may be more limited. Traditional lenders conduct a credit check on all mortgage applicants and may decline those with a poor credit history. But don’t lose hope!
There are specialist lenders who cater specifically for those with bad credit, often considering circumstances such as illness or divorce. These lenders tend to be more flexible, but may charge higher interest rates and require larger deposits. If you’re in this situation, there are steps you can take to improve your chances: allow time for your credit history to recover, consider your partner’s credit history if buying together, work on repairing your credit history, and try to present yourself as a lower risk by applying when you have a stable income and offering a high deposit.
Improving your credit score is a crucial step in preparing for a mortgage application. Here are some tips to help you boost your creditworthiness:
Remember, improving your credit score takes time, so it’s best to start working on it well before you plan to apply for a mortgage.
It could still be possible to refinance your mortgage if you have a history of bad credit. Your overall financial situation will be taken into consideration, and obtaining a copy of your credit file is recommended. It may be advisable to speak to a specialist mortgage broker to evaluate your options.
Lenders focus mostly on the last 3 years of your history. However, all information on your credit file is taken into consideration. The detail on your file is held for 6 years. The more severe the event the more relevant the time scale of when it occurred.
In some instances lenders will not agree a mortgage application regardless of when an event happened or if it still shows on your credit file. Events such as repossessions are one example.
We strongly recommend you try to have any records registered in error removed. Try to do this before you apply for a mortgage whenever possible.
For a joint application, both borrowers’ credit histories will be taken into consideration. This can include discharged bankrupts, those in an IVA or who have defaults and CCJs on their credit report.
Porting a mortgage is the process of transferring your existing mortgage deal to a new property. This means you keep the same mortgage terms, such as the interest rate and period it applies for. Here are some key points about porting a mortgage:
Porting your mortgage means taking your existing mortgage to your new property with the same terms and conditions. It’s like taking a new loan, but the new one will work to repay your current mortgage, so you’re starting over again with the new house.
This option may be suitable if you’re still in the fixed term period of your existing mortgage, as you won’t face the early repayment charges of remortgaging. Porting is also a good idea if you’re on a good deal with a low interest rate and great terms. However, if you’re moving to a more expensive property, this could mean you need to apply for a larger amount when you port the mortgage.
On the other hand, remortgaging is a new mortgage deal with a new lender. Your new mortgage provider pays off your old mortgage, so you’re then responsible for making your monthly repayments to the new provider. It’s different from porting your mortgage because you can choose from the whole remortgaging market and the great deals available, rather than staying with your existing provider. However, you could face big costs in terms of early repayment charges, arrangement fees, and charges for your new home loan.
Strictly speaking you can remortgage at any time, but it’s best to choose a time when there’s a definite advantage in moving mortgages. Here are some scenarios when remortgaging could be beneficial:
However, it’s important to consider the costs of remortgaging, such as early repayment charges and exit fees. It’s recommended to start looking around three to six months before your current deal ends to avoid delays. Always consult with a mortgage adviser to ensure the best decision for your personal financial situation.
Yes, fee-free remortgage deals are offered by most lenders. These are mortgage deals that come with no arrangement fees, valuation fees or solicitor fees, meaning you’ll pay less upfront when you take out the deal.
This will likely mean the interest rate will be higher compared to other products, so it is important to speak to a mortgage adviser to consider all these costs to see if remortgaging is the best option for you. There could still be charges for paying off your old mortgage early and fees for closing it.
Yes, you can remortgage a Buy-to-Let property. Lenders will look at the rent you could get, your personal situation, the property’s value, and how much equity you have in the property.
Guarantor mortgages are a type of mortgage where a third party, usually a parent or close family member, agrees to take on some of the risk of the mortgage by acting as a guarantor. This usually involves them offering their home or savings as security against your mortgage, and agreeing to cover the mortgage payments if the homeowner defaults.
However, some lenders offer a similar product known as a joint-borrower, sole-proprietor mortgage. This type of mortgage allows an eligible client to apply with someone who’s willing to accept joint responsibility for making mortgage payments, but without having a legal claim to the property.
It’s always recommended to seek professional advice when considering these types of mortgages.
First-time home buyers typically need a deposit between 5% and 20% of the property’s value. Most commonly, this can be sourced from savings, investments or possibly with gifted equity deposit from the vendor who would usually be a family member. There are also options with the help of the First Homes Scheme and Deposit Unlock Scheme.
An increasingly common type of deposit is a gifted deposit. This is money given by a family member to a homebuyer to use as a deposit on a property. Most mortgage lenders prefer it if the person gifting you the money is an immediate relative and for it to be non-refundable and not a loan, with the giftor having no residual interest in the property.
The larger your deposit, the less you need to borrow, which can reduce your monthly mortgage repayments and give you access to a wider choice of mortgage products at better interest rates.
Yes, it is possible for a first-time buyer to become a buy-to-let landlord. However, obtaining a buy-to-let mortgage as a first-time buyer can sometimes be more challenging compared to a first-time buyer applying for a standard residential mortgage. Here are some key points to consider:
Please note that if your first property isn’t one that you will live in yourself, you won’t qualify for first-time buyer stamp duty relief.
When purchasing a buy to let property you will likely pay more Stamp Duty. In 2016 Government brought in changes to the rates of Stamp Duty.
Anyone purchasing an additional property will have an extra surcharge of 3% added to the current Stamp Duty Rates. To calculate how much Stamp Duty you may need to pay, try our Stamp Duty Calculator.
he monthly payment is crucial for calculating the property’s profit. It’s vital to have the right mortgage for your needs. Many buy-to-let mortgages have an end date when the loan switches to a higher lender rate. Borrowers often explore new lenders or consider switching.
We also check if your current lender can offer a better deal. We recommend what suits your needs, but there’s no guarantee of continuous rental income covering the mortgage. Staying with your current lender may have benefits, like no extra checks or paperwork, and possibly no need for property valuation or solicitor fees.
Yes, it is possible for a first-time buyer to become a buy-to-let landlord. However, obtaining a buy-to-let mortgage as a first-time buyer can sometimes be more challenging compared to a first-time buyer applying for a standard residential mortgage. Here are some key points to consider:
Yes, a self-employed client working abroad can be eligible for an Expat Residential mortgage. However, the specific eligibility criteria can vary depending on the lender. Some lenders may require proof of income and may have specific requirements related to the stability of the client’s self-employment.
Yes, expats can indeed get buy-to-let mortgages. Many lenders offer buy-to-let mortgages specifically designed for expats. These mortgages allow expats to buy property in the UK to rent out, even while they’re living abroad. However, the specific terms and eligibility criteria can vary between lenders, and some may have specific requirements related to the expat’s country of residence, income, and the property itself.
Expat mortgage requirements can vary depending on the lender, but here are some common criteria that you may need to meet:
For a holiday let mortgage, you will typically need to provide a deposit of at least 25% of the value of the property. The reason that the deposit required for a holiday let is slightly larger than some buy-to-let mortgages is that lenders view the risk associated with short-term letting as higher than buy to let.
Yes, you can live in your holiday let, but there are certain conditions and restrictions you need to be aware of:
Please note that these are general guidelines and the exact rules may vary depending on the lender’s policies and your personal financial situation. It’s always a good idea to consult with a mortgage advisor or financial expert before making any decisions.
