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: 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.
To find out more about how Green & Green can help, just get in touch today.
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