FAQs

General

What is a remortgage?

When you switch from one mortgage to another this is called remortgaging. The two primary reasons why people remortgage are to save money or to raise money. You might save money if you switch to a mortgage that offers a lower rate of interest, which can mean that your monthly repayments are lower. You can raise money if you remortgage to release equity in your home or maybe you just want to fix your monthly mortgage payments to help you budget your household expenses. All of these scenarios need to be carefully considered, because most remortgaging activity will incur administration and/or arrangement costs; and of course, as ever, if you find yourself with a mortgage you can’t afford to repay, then your home may be repossessed.

Why should I use a broker?

Quite simply because a broker can save you lots of time, lots of hassle, and then hopefully money too in the long run. A mortgage broker will always keep up-to-date with mortgage product developments; it can be a very complex and fast-moving industry and we think it’s sensible to take advice from the experts so you can be sure you’re getting the very best financial product that’s available.

What does ‘whole of market’ mean?

"Whole of market” is an expression used when a mortgage broker is not tied to using a set number of mortgage lenders and, therefore, has access to the whole of the market.

How much can I borrow?

This depends on several factors and will also depend on what product is best for you. So for a mortgage or a remortgage on the home you live in, your household income will determine the amount you can borrow. If you’re looking for a buy to let mortgage, the value of the property and expected rental income are the major factors that affect how much you can borrow. Your credit rating will also affect your eligibility for any mortgage or loan.

Is a valuation required?

For financial products that are secured against a property such as mortgages, remortgages, buy to let mortgages, first time buyer mortgages, and other products such as bridging loans, secured loans, self-build mortgages and equity release plans , a valuation is usually required. The lender will need to be sure that they could recoup their loan if you failed to repay according to the terms you agreed. In some cases, you are liable to pay for the valuation so you must factor this into your outgoings.

What about if I am self-employed?

Mortgage products are available for people who are self-employed who can provide evidence of their business accounts. Mortgage lenders recognise that self-employed clients’ income can fluctuate from one month to the next and, therefore, the higher risk is normally offset by charging a higher rate of interest. .

What is the difference between a bridging loan and a secured loan?

A secured loan is when someone borrows money from a lender, and pledges an asset such as a house as collateral for the loan. If the borrower were to subsequently default on the repayments, then the lender could legally seize the asset used as collateral and resell it to raise the funds required to repay the loan. A bridging loan is usually a type of secured loan, but taken out for a short period of time to address a short-term cash flow issue, such as when purchasing a property via auction or if you wish to move into a new home without having sold the previous one.