WHAT IS A MORTGAGE?

A LEGAL AGREEMENT BY WHICH A BANK, BUILDING SOCIETY, ETC. LENDS MONEY AT INTEREST IN EXCHANGE FOR TAKING TITLE OF THE DEBTOR’S PROPERTY, WITH THE CONDITION THAT THE CONVEYANCE OF TITLE BECOMES VOID UPON THE PAYMENT OF THE DEBT.

HOW MUCH CAN I BORROW?

GENERALLY, BETWEEN THREE AND FOUR AND A HALF TIMES YOUR SALARY. USE OUR ONLINE MORTGAGE CALCULATOR AT THE BOTTOM OF THIS PAGE TO FIND OUT!

HOW DO I GET STARTED

WE AT THOMAS WHITING LTD HAVE MORTGAGE ADVISERS WITH EXPERT KNOWLEDGE AND EXPERIENCE. YOU CAN CONTACT US AND ONE OF OUR ADVISERS CAN GET IN TOUCH WITH YOU AND ASSIST YOU ALONG EVERY STEP OF THE PROCESS.

WHAT DOES A DECISION IN PRINCIPLE MEAN?

THIS BASICALLY OUTLINES WHAT A LENDER COULD BE PREPARED TO LEND YOU.

WHAT STAMP DUTY WILL I PAY?

USE OUR ONLINE STAMP DUTY CALCULATOR AT THE BOTTOM OF THIS PAGE TO FIND OUT!

WHAT DOES LOAN TO VALUE MEAN WITH A MORTGAGE?

OFTEN SHORTENED TO LTV – IT IS THE SIZE OF THE MORTGAGE COMPARED TO THE VALUE OF THE PROPERTY.

THIS VALUE IS OFTEN SHOWN AS A PERCENTAGE.

WHAT’S THE DIFFERENCE BETWEEN AN INTEREST-ONLY MORTGAGE AND A REPAYMENT MORTGAGE?

REPAYMENT – PAY BACK A CHUNK OF THE MORTGAGE WITH INTEREST EACH MONTH, GRADUALLY REDUCING YOUR BALANCE.

INTEREST-ONLY – PAY BACK JUST THE INTEREST ON THE MORTGAGE EACH MONTH. BUT THE FULL LOAN NEEDS TO BE PAID BACK AT THE END OF THE ‘TERM’.

WHAT’S THE DIFFERENCE BETWEEN A FIXED-RATE MORTGAGE AND A VARIABLE-RATE MORTGAGE?

FIXED-RATE – THE AMOUNT YOU PAY REMAINS CONSTANT FOR AN AGREED TERM.

VARIABLE-RATE – THE AMOUNT YOU PAY FLUCTUATES ALONG SIDE THE BANK OF ENGLAND BASE RATE.

(THE BASE RATE INFLUENCES THE INTEREST RATES THAT LENDERS WILL CHARGE.)

HOW LONG DOES A MORTGAGE LAST FOR?

THERE IS NO DEFINITIVE ANSWER TO THIS. HOWEVER, GENERALLY SPEAKING, MORTGAGES USUALLY LAST UP TO A TERM OF 35 YEARS.

CAN I PAY OFF MY MORTGAGE MORE QUICKLY?

THIS CAN BE ACHIEVED VIA ‘OVERPAYMENTS’. IF YOU PAY AN INCREASED AMOUNT EACH MONTH THIS CAN REDUCE THE OVERALL INTEREST YOU PAY AND CAN REDUCE THE TERM OF YOUR MORTGAGE. HOWEVER, MAKE SURE THAT YOU CHECK YOUR LENDERS TERMS AND CONDITIONS, AS MOST WILL ONLY ALLOW AN OVERPAYMENT OF 10% EACH YEAR. ANYTHING ABOVE THIS AMOUNT WILL RESULT IN A FINANCIAL PENALTY.

WHAT ARE MORTGAGE COSTS?

THERE ARE A FEW FEES THAT YOU WILL TYPICALLY PAY: AN ARRANGEMENT FEE, PRODUCT FEE, MORTGAGE BOOKING FEE, VALUATION FEE AND OTHER FEES IF YOU USE A MORTGAGE BROKER.

WHAT IS A MORTGAGE BROKER?

ALSO KNOWN AS A MORTGAGE ADVISOR – IS A SPECIALIST WHO CAN HELP YOU WITH EACH STEP OF OBTAINING A MORTGAGE. THEY CAN HELP FIND THE BEST DEAL FOR YOUR UNIQUE CIRCUMSTANCE.

WHAT WILL I BE ASKED IN AN INTERVIEW FOR A MORTGAGE?

FIRST OF ALL, YOU WILL NEED PAPERWORK: PROOF OF ADDRESS, IDENTITY AND INCOME.

SOME QUESTIONS THAT WILL BE ASKED ARE:

1. YOUR CURRENT UTILITY BILLS AND OTHER REGULAR OUTGOING COSTS.
2. DISCRETIONARY SPEND (HOLIDAYS, LEISURE, ETC.)
3. CHILDCARE AND SCHOOL FEES
4. LOANS
5. PENSION PAYMENTS
6. DO YOU HAVE OR ARE PLANNING TO HAVE ANY CHILDREN?
7. DO YOU EXPECT ANY CAREER OR JOB CHANGES?
8. WHAT DO YOU EARN AND HOW?
9. DO YOU HAVE ANY DEBTS?