THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE BUY TO LET MORTGAGES AND COMMERCIAL MORTGAGES.
The mortgage market changes all the time, not just in terms of mortgage deals and regulation but also in the way lenders assess loan applications. Some of the changes have been in the way mortgage lenders assess the suitability of all clients for the different types of loans on offer. They base this decision on a variety of factors.
In order to satisfy lenders loan criteria and ensure you obtain competitive terms. It is important to understand your specific requirements and your financial situation. Some examples of points your adviser will consider before making a recommendation are:
Your attitude to risk
Possible poor credit history
Not limited to the points above, your mortgage adviser is able to make a suitable recommendation.
We work from a panel of lenders that can offer exclusive rates via Quilter Financial Planning. As part of Quilter Financial Planning, who have over 3300 financial advisors. Quilter is able to negotiate more competitive rates with many lenders for the benefit of our clients. The panel is representative of the whole mortgage market giving you more opportunities of approval on more competitive terms.
Exclusive deals can include:
Lower interest rates
Free legal fees
Cash back towards fees
Lower or no mortgage product fees
Exclusive deals are not available in all scenarios and are not available on all mortgage products.
Commercial funding (via referral to a master broker)
Bridging loans (via referral to a master broker)
Development funding (via referral to a master broker)
Repayment method and mortgage term
Part interest & part repayment
Repay your mortgage over a more suitable period, tailored to your affordability requirements. Some examples are; 5, 10, 15, 20, 25, 30 and 35 year terms.
What is the most suitable repayment method?
The most appropriate repayment method depends on different factors. Some examples are;
What type of property is being purchased
If you have other assets with a sufficient valuation to cover your mortgage balance. The interest only option can be considered.
The term can depend on whether your pension is sufficient enough to support your mortgage, if the loan runs into retirement. Many people have the impression that they cannot get a mortgage in retirement. This is not correct as our lenders have mortgage possibilities for people aged 80 and above.
Are you already retired and interested in generating income from a buy-to-let property.
Is the mortgage associated with rental property and the main aim is income generation.
One repayment method is not suitable for every client. Your financial advisor can discuss more options and make the most appropriate recommendation.
Rate type and initial discount period
2 year deal
3 year deal
5 year deal
Free valuation and legal fees are available on many mortgage products subject to your financial status.
Exclusive mortgage products can offer you cash back towards legal expenses and valuation fees.
How much can you afford?
Unlike many lenders, as a broker firm we can’t give an exact calculation for working out your maximum loan size, using a multiple of your monthly income. As we work with a panel of lenders, the mortgage criteria varies considerably. This flexibility in lending criteria gives clients the opportunity to obtain larger loan amounts, making more expensive property purchases possible. So clients considering buying more expensive properties with insufficient income, there are opportunities available.
More ways we can help
Employed for 3 months or less
Small deposit, such as 5%
Self employed with 1 years accounts
Adverse credit such as CCJ’s, defaults, missed payments
Income stretch to buy more expensive properties
Raising capital for home extension
Maybe you just want to know your options and are looking to buy in the future
First-time buyers need to obtain the most suitable first-time-buyer mortgage. You can take advantage of our services and professional tie-ups with lenders for exclusive rates and ongoing support. Some of the criteria associated with first time buyers are;
5% deposit or 0% deposit
Buying with builder deposit
Help to buy schemes
Shared ownership schemes
A free property valuation and legal fees maybe available, subject to your financial situation.
If you already own a property a remortgage is possible. For people who’s term is ending or their financial situation has changed or about to change, it may be prudent to consider shifting the existing mortgage to a new lender, on better terms. Shifting to a new mortgage rate can reduce your monthly payments. A remortgage can be a great way to obtain funds for:
Deposit for a buy-to-let purchase
Helping family onto the property ladder
Landlords expanding their property portfolio
Free valuation, Free legal fees or Cashback towards your fees is available on many remortgage products.
We support existing landlords and clients considering buying their first rental property. Buy-to-let mortgages require clients to provide a bigger deposit towards their property purchase. The mininum deposit is typically 15% to 20% of the purchase price. The larger your deposit the lower your interest rate and the lower the fees attached to the mortgage product.
There are tax considerations landlords must explore prior to buying a rental property. This can be particularly important for clients in the higher income tax bracket. In addition to income tax on rental income, you must consider stamp tax on your initial purchase. Buy to let purchases are most likely to be a second property, so the stamp tax is typically 3% of the purchase price. The exact percentage will depend on purchase price and which tax bracket is applied. We don’t provide tax advice and we recommend if clients have any tax related concerns they should obtain tax advice from a qualified professional.
With right-to-buy purchases, clients can use their discounted equity value from the housing association as their deposit. In many scenarios, with right to buy purchases, clients are not required to provide any of their own cash deposit, towards buying their property.
Initial mortgage reviews are free. We DO NOT charge fees for providing life insurance and home insurance advice. We are paid commission by the product providers.
What documents are required?
We support the Proceeds of Crime Act and all efforts to eliminate Money Laundering. As Part of this, we need to verify the identity of all our clients. We ask that you provide some original documents containing your name and your address. You must provide at least:
One proof of identity document – e.g. Passport or Driving Licence
One proof of address document – e.g. utility bill from last 3 months
To support your mortgage application
Last 3 months consecutive bank statements
3 months wage slips or 13 weeks
1, 2 or 3 years accounts if self employed
A Copy of your credit file
Self-employed- last 1, 2 or 3 years SA302’s, TYO’s
Current mortgage statement
State benefits – evidence of any state benefits (letter dated within the last 12 months for each benefit)
Pension income – if lending into retirement
Gift of deposit letter
Your current assurance/insurance provisions. If you have home insurance or a life policy a copy of the policy documents showing what cover you currently have
Source of deposit
We will have to identify the source of your deposit. (E.g. if from your own savings then your last 12 months bank statements). It maybe equity in your current property, in this case no proof is required.
In cases were the deposit is a gifted deposit from your family, we would require a gifted deposit letter from the donor. We will provide you with a template if necessary to support your application.
With the increase in identity theft we strongly recommend you obtain a copy of your own credit report. This is to ensure your application is not delayed by uncovering surprises later in the process. It also means that any issues uncovered can be addressed, as it does not mean your application is automatically declined – indeed many lenders have provisions for this type of business. Check the initial and ongoing fees that agencies charge as they can vary. The main agencies to approach are Experian, Equifax, Callcredit, Clearscore.
You don’t have all supporting documents
If you do not have all supporting documents in time for your first appointment, This can be discussed with your financial advisor. The advisor is still able to provide advice without all supporting documents, however any outstanding documents will be required prior to submitting your full mortgage application.