Q1. I've been told that it's difficult for me to get a mortgage because I'm self employed. Is that right?
A. Not particularly. With both employed and self employed people the requirement is that you can prove your income. This usually means wageslips it you're employed or certified accounts if you're self employed. If you do self assessment all you need are your SA302 forms from the Inland revenue to prove your income. You can request these direct from HMRC.
Q2. What is a 'self cert' mortgage?
A. 'Self cert' stands for self certification. In basic terms the borrower declares their own income where it cannot be proven by the usual means. This kind of mortgage no longer exists with most lenders.
Q3. Are mortgages for the self employed more expensive than a traditional one?
A. No. You would be accessing the same products as employed applicants.
Q4. How much deposit do I need?
A. The minimum deposit you should be aiming for is 10%. It may be possible to get 95% for first time buyers accessing the new (build) buy scheme. also 95% may be possible through a guarantor mortgage where your parents or close family guarantee the mortgage.
Q5. I've had some financial problems in the past and it's affected my credit rating. I've been to a high street lender who refused me. Can I still get a mortgage?
A. Very possibly. It just depends on your personal circumstances. Please call us for further information.
Q6. I am paying out alot of money every month on loans and credit cards. Can I bring down that monthly cost?
A. If you are a home owner and there is enough equity in your house it can often be a good idea to consolidate your unsecured debt by way of a remortgage. The interest rate is often considerably less than on unsecured loans. Therefore your monthly payments could be reduced using this method. However you must keep in mind the likelihood of paying your debt off over a longer period.
Q7. What is a remortgage?
A. A remortgage is when you change your mortgage from your existing lender to a new one.
Q8. Why should I remortgage?
A. Many people have a mortgage with the same lender for a number of years. It is likely that the interest rate they are paying is high. A remortgage to a new lender could reduce that interest rate and therefore the monthly payments. Another reason could be that a borrower needs to raise some cash for home improvements, a holiday, a new car or any other purpose. It can often be the case that a remortgage to a lower interest rate as well as raising funds can still result in lower monthly repayments.
Another reason is to consolidate debt as set out in Q6.
Q9. What is second charge?
A. A second charge or secured loan (as it more commonly known) is like having a second mortgage on your property. The original mortgage is still in place and that lender has preference over the second charge lender.
Q10. Why should I take out a second charge (secured loan).
A. If you need to borrow money at a cheaper rate than an unsecured loan this may be the route to take. The first option would be to consider a remortgage but if you are tied into your original mortgage and the lender is going to charge you a penalty to redeem it, a second charge may be the answer.
Q11. Why should I use a broker?
A. Because we are qualified mortgage experts with years of experience in a complicated and ever changing market. Your mortgage is likely to be the largest transaction you are to make and mistakes are easily made, possibly costing thousands in the long run. We are independent and have access to over a hundred lenders with over a thousand mortgage products