When it comes to applying for a mortgage, having all the information you need to make the right decisions cuts down on time, costs and stress.
Whether you’re new to mortgages or going back to the application process after deciding to relocate again, the process never seems to be easier, although there are great rewards to be reaped in the end.
However, it helps to know that if you’re having trouble, you’re not the only one – thousands of people go online every month to ask Google questions about mortgages. Although with so much information, it can be difficult to search for answers online.
So we enlisted the help of top real estate expert and founder of Pure Property Finance, Ben Lloyd, to answer some of the UK’s most searched mortgage questions.
1. How much mortgage can I borrow?
“How much mortgage you can afford depends on a number of different factors, the main one being how much you earn per month. Other factors include how much deposit you have, how long you want to borrow, and your regular financial commitments, including household and lifestyle expenses or existing debts.
“Typically, lenders will offer you about four to four and a half times your monthly salary, taking away bonuses and commissions, but it depends on individual circumstances.”
2. How to get a mortgage?
“You can either go directly to a lender or a broker to start your mortgage application. Brokers often charge a nominal fee, but their job is to find the best mortgage rates for you and your situation. Going directly to a lender can mean that you will pay more interest rates over time, or higher fees, depending on whether the broker can negotiate them on your behalf or if they have access to exclusive offers reserved. to brokers.
“Some real estate agents may apply for a principle mortgage before accepting any offer your broker or lender may make to you based on your income. It is essentially proof that you will be able to afford a house and shows the real estate agent that you are serious about the purchase.
“Once you have found the property you are looking for, you will need to provide several documents to your broker or lender; identification such as a passport, usually six month bank statements, employment details, payslips for the past three months and proof of your deposit. ‘
3. WWhat is a mortgage?
“A mortgage is basically a loan from a bank or building society to help you pay for your property. The mortgage goes directly to the seller, so you will never see it, but you will pay it off monthly over about 25 years. The more down payment you have, the less mortgage you will have to borrow.
4. How long does a mortgage loan application take?
“Mortgage applications were taking about one to two weeks, although we have recently seen these take a bit longer due to the pandemic. There are a lot more people applying for mortgages right now, but also a lot less staff in banks and consulting firms due to layoffs, illness and quarantine.
“Just make sure you submit all the proper documents, signatures, bank statements, and ID so lenders don’t need to sue you for anything else. This should speed things up! ‘
5. What is a life mortgage?
“A lifetime mortgage is a type of mortgage that a person can take out that does not need to be paid off until that person dies or goes to long-term care. That person will still have full ownership of the property, and they will still be able to live there. These are only really accessible to people over 55 years old.
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