What is a mortgage?
A mortgage is simply a term for a loan secured on a property.
How long are mortgages usually for?
The mortgage term is the length of time you have to pay back the loan plus interest that you borrowed. Many people choose 25 years but you do not have to stick to this and the term could be shorter or longer. We can help you decide on the best term for your needs but remember a shorter term will of course mean that you are debt free earlier whereas if you choose a longer term, although a repayment mortgage is cheaper each month, you will not become debt free for a very long time and you certainly need to carefully consider how you might pay for the mortgage when you want to retire.
How much can I borrow?
This mainly depends upon 4 factors - i.e how much you earn, how much the property is worth, your credit history, and how much you can actually afford. These days most lenders operate on an "affordability basis" as opposed to using mere multiples of your earnings for example they take into account your other commitments such as household bills, other loans, maintenance payments etc. Every lender has different criteria and takes a different view so talk to us to find out how much lenders are likely to lend you.
What is a guarantor mortgage?
If you are struggling to get a mortgage based upon your income it may be possible to utilise the income of a guarantor in order to increase the amount of loan they lender is willing to grant you. A mortgage guarantor is someone who promises to take responsibility for your mortgage. If you default on your mortgage they will be obliged to make the mortgage payments. This is a legal commitment and lasts until the end of the mortgage term or the lender is satisfied that you can cover the full loan yourself.
Who can be a guarantor?
It is most usual to ask a parent or guardian to act as guarantor, but any relative or even a long-standing friend can act. To be acceptable to a lender they must prove they have enough disposable income after paying their own mortgage and commitments to meet your monthly payments.
Can we apply in joint names?
If you’re taking out a mortgage with your spouse or partner, i.e. on a joint applicant basis, you should remember you’re both normally liable for the full amount of the mortgage loan until it has been repaid. This is commonly referred to as ‘Joint and Several liability’. MortgageFinders can explain in more detail how this works.
Can MortgageFinders help us actually apply for a mortgage?
Once we have agreed the best product with you we can usually use the information that you have provided to apply directly to the lender on your behalf and we do this for free. More and more lenders have online portals to which we have access and this allows us to quickly process the application for you although there are usually some forms and declarations for you to sign which we will send to you by post.
Will MortgageFinders keep track of the application once it has been submitted?
We follow your application right through from start to finish and tackle any problems which arise on the way. We will contact you by email or phone to let you know of progress and whether we need more information from you. Our commitment to you never stops even when the mortgage money has been paid out - see our Customer Charter.
Do MortgageFinders really not charge me anything?
MortgageFinders are able to provide a fees free advice service because we chiefly operate over the telephone. This not only means that you really do not have to pay us a penny, but it also means that we can make appointments to talk to you at any time of day to suit your busy life style and needs. In a way it is like being able to talk to a solicitor and receive expert advice without being charged.
If you do not charge a fee how do you get paid?
MortgageFinders receive a fee from the chosen product provider if and only if we arrange that product for you. Our advice, help and service to you does not cost you a penny. Providers are happy to pay the fee to us direct as we effectively do some of the processing for them - example when we apply online for a mortgage on your behalf.