Take a look at some of our frequently asked questions below
Q: I’m self-employed, how many years accounts do I need?
Typically, lenders require the last 2 years accounts for self-employed applicants as they average out the last 2 years, but we have access to some lenders who only require 1 year.
Q: Do you advise on commercial mortgages?
No, strictly residential and buy to let. If the property is going to be used for business use or has mixed use, we wouldn’t be able to advise.
Q: How many payslips do I need?
For a new role - your employment contract and your 1st payslip
For established roles – Last 3 months
Q: Are you supported by a network?
We are supported by an award-winning network called PRIMIS, who give us access to a whole range of lenders.
Q: How long is a mortgage in principle valid for?
Most mortgage in principles are valid for 90 days.
Q: What is conveyancing?
Conveyancing is the term of solicitor work. Conveyancing is the process of property transactions. The process of transferring the legal ownership between parties.
Q: What is loan to value (LTV)?
Loan to value is the size of your mortgage compared to the value of the property. The lower the loan to value (smaller mortgage compared to value of the property) the lower interest rates you can qualify for.
Q: How much deposit do I need?
For a residential mortgage you would need a minimum of 5%. For Buy to Let you would need a minimum of 20%.
Q: Can I let a property to a family member?
No, lenders do not let you let a property to family. It must be for business purposes only at full market value rent.
Q: Can I buy a property at auction with a mortgage?
This is doable but very difficult. If you buy at a mortgage you are required to complete on your purchase within 28 days. It’s very difficult to submit an application, have it reviewed and approved, along with your legal searches within that 28-day timeframe. If you are looking to buy at auction you may be better suited to cash or bridging finance.
Q: Can I have 2 residential mortgages?
Yes, some lenders will let you have 2 residential mortgages. They will assess your income and outgoings to ensure you can afford both mortgages and both sets of running costs for the 2 properties. You will also be liable for additional stamp duty on the 2nd property.
Q: What is an interest only mortgage?
An interest only mortgage is a mortgage in which you only pay off the interest on your loan each month. You would need to find an alternative method of paying off the full amount you have borrowed before the end of the loan. This could be a stocks and shares ISA or other investment vehicle.
Q: What is a repayment mortgage?
A repayment mortgage is a mortgage in which you pay off the interest on your mortgage along with the amount you have borrowed over time. Your monthly payments are made up of a mix of the money you have borrowed plus the interest charged. Each payment you make each month chips away at the full amount until you make your final payment and you have paid off the full amount.
Q: What areas do you cover?
We cover the entire UK. Our license to advise covers the whole UK, so as long as you have an internet connection and a phone line we can help you.
Q: What score do I need on my credit report to get a mortgage?
There isn’t a hard and fast rule with lenders on how high your credit score needs to be but generally the higher the better. Mortgage lenders are more concerned with the content of that report and the adverse events that may be on there, such as missed payments, defaults, county court judgements, IVA’s and bankruptcies.
Q: Should I use a LTD company for my next buy to let purchase?
The reason for purchasing BTL properties in a company would come down to your personal tax situation and your plans for building a property portfolio. We are not authorised to give tax advice, we recommend speaking to your accountant for tax advice before purchasing your property.
Q: Does a lender need to see my bank statements?
- In short, yes. As both advisers and lenders are regulated by the FCA, part of our roles are to complete money laundering and fraud checks. An assessment of bank statements is one way in which these checks are completed.
Q: Where can I get a copy of my credit report?
We recommend using checkmyfile.com as they use 3 credit reference agencies on one report so that all information is in one place. We have access to a 30 day free trial with checkmyfile.com if you would like the link please email us.
Q: Are we independent?
Yes, we are supported by the PRIMIS network which give us access to the wider market. We also have access to lenders off that panel also.
Q: Do we advise on self employed mortgages?
Yes, we help many self employed clients buy their next home whether sole traders or LTD company directors we can help. We have access to lenders who can assess various types of self employed income to maximise your income to buy the home you want.
Q: Do we charge a fee?
For purchases we charge a flat fee of £495 charged on offer, for remortgages its £250 on completion and for returning clients there is no charge.
Q: Do we partner with any solicitors?
No we dont. We let our clients choose their own solicitor, we think it's best to let our clients choose the solicitor they feel most comfortable with.
Q: Do we advise on bad credit mortgages?
Yes, through our extensive panel of lenders we have access to the lenders who offer mortgages for applicants with adverse credit from missed payments to bankruptcies.
Q: Do we offer equity release?
Yes, we now offer equity release and lifetime mortgages. We have Rhys, our equity release specialist to help with all equity release queries.
Q: Can I use a buy to let mortgage to buy my next home?
No, buy to let mortgages are for investment purposes only and they cannot be used for the applicant to live in. They cannot be used for the applicant or a family member to live in. If the lender found out they can recall the loan and criminal proceedings may be brought forward.
Q: How can I minimise stamp duty?
Unfortunately stamp duty cannot be afforded so when buying your next property you should account for stamp duty in your calculations.
Q: Do you advise first time buyers?
Yes, we specialise in helping first time buyers get on the property ladder
Q: What’s the minimum deposit I need to buy my own home?
Most lenders require a minimum deposit of 5%
Q: Do you offer buildings & contents insurance?
Yes we do, we have access to a panel of insurers to advise from
Q: I have a CCJ, can I get a mortgage?
Yes, depending on the age and value of the CCJ a number of lenders will consider you for a mortgage
Q: What is a remortgage?
A remortgage is the act of switching your current mortgage with a new mortgage with a new lender.
Q: Do I need life insurance for a mortgage?
It is not a legal requirement for you to have life insurance when you have a mortgage but it is highly recommended as you are entering into the biggest financial commitment of your life.
Q: What fees may I incur when buying a house?
There are a number of fees that you may need to pay such as a valuation fee, a building survey , solicitor fees, a mortgage adviser fee and solicitor fees
Q: What is loan to value (LTV)?
Loan to value is the term used for the size of the mortgage compared to the value of the property. The lower the LTV (smaller mortgage compared to the property value) the lower the interest rate tends to be.
Q: What is an early repayment charge?
An early repayment charge is a fee that many mortgage products have attached to them that are incurred if you leave your mortgage early either by selling your property or remortgaging early.
Q: Can I release equity in my home to repay my debts?
Yes, most lenders will let you remortgage up to 85% of the properties value.
To find out more about how Green & Green can help, just get in touch today.
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