[col type=”one-third”]
Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk/
Tel: 0345 345 6788
[/col]
[col type=”two-third last”]
[hr style=”single”]
Question
Mortgage Guarantee Scheme – How to sign up
I have heard I can get a 95% mortgage using the government’s new guarantee scheme but I am a bit confused about how to sign up? Do I need to contact one of the lenders involved or is there another route? Thanks for your help.
Answer
The great thing about this scheme is that you (the borrower) doesn’t have to sign up for anything. All you need to do is speak to a lender offering 95% LTV mortgages, and if you meet their criteria, you’re good to go.
While not dictated by the government scheme per se, most lenders on this scheme specify that the borrower does not own any other property. If this is going to be a problem, give a broker a call, and they’ll be able to help.
[hr style=”single”]
Question
Which comes first? The mortgage or the offer?
First-time buyers here – so excuse the silly question! Do you know if it’s best to get the mortgage offer before we put in an offer for a property, or should we wait until after we have had an offer accepted?
I only ask because we are not sure yet how much we will need a mortgage for as the properties we are looking for are in a broad-ish price region. We have refined our search to homes between £250,000 and £275,000.
Any advice would be gratefully received!
Answer
There’s no such thing as a silly question! The mortgage offer comes after you have had an offer accepted on the property.
However, before putting an offer on a property, you can get a mortgage agreement in principle (AIP). This is where a lender reviews your income and commitments, looks at your credit file and confirms in principle that they would be happy to lend you the amount you need.
With this document, you can prove to estate agents that you’re credit-worthy and therefore likely to complete on the purchase.
Buying your first home is a bit of a minefield, so if you have any concerns, I’d recommend speaking to a mortgage broker who can talk you through the process.
[hr style=”single”]
Question
I’m a contractor – can I get a mortgage?
We are looking to move a bigger property thanks to the impending arrival of twins in the summer.
When we took out the mortgage on our first property both my wife and I were employed by respective companies and the mortgage process was quite straight forward.
However, now – nearly five years down the line – my wife is due to go on maternity leave and I am working as a contractor. I actually earn more money now, but my income is a little more up and down. My wife is hoping to return following mat leave in March 2022.
What are our prospects like? We have about £300,000 to put down on a £850k home (this is all estimates) as we have built up a lot of equity. However, I am a little concerned lenders won’t like our new, erratic incomes!
Answer
Firstly, congratulations! I hope you’re cramming in sleep while you still can!
For your wife, as long as her employer can provide a return to work letter, setting out her terms of return, then her usual income can be used.
For you, lenders are generally fine with contractors, as long as you can show a good history. Ideally, they like to see a year with a contract renewal.
In terms of affordability calculations, lenders will tend to use your day rate, assuming you work 46 weeks per year (i.e. day rate x5, x46 = salary). I’m sure you’ll be fine, but if you have any difficulties, do get in touch with a broker who will help.
[hr style=”single”]
Question
Can I change my mortgage deal during transaction?
I am just going through the process of purchasing my first home and it’s all quite overwhelming. One thing which is causing me a lot of stress is the mortgage. I found a deal which I am eligible for which is through a high street bank. It’s all going through now but I have since discovered from friends I could have got a much better rate. Is it too late to change my mortgage?
I am currently with a solicitor who has started searches etc, mortgage offer has been accepted in principle but waiting for the bank’s surveyor to give the nod. I am feeling really stressed that I might be paying too much and am not sure what to do!
Answer
Buying a home, especially for the first-time, can be a stressful process! There’s nothing to stop you switching lenders, although it will involve starting the mortgage process from scratch. Depending on how things are moving, this might mean you don’t have enough time before completion.
I would speak to a mortgage broker who can look at all your options and calculate the potential savings on offer. A good broker should also be able to advise on lender timings too, which will help determine if you have enough time to make the switch. Good luck!
[hr style=”single”]
[/col]
