Independent advice for your first home, move or re-mortgage.
The world of mortgage finance can be a complex one. It can be both daunting and confusing. I see my role as taking away the complexity and replacing it with simplicity.
Turning daunting into calming and confusing into clarity.
As a ‘Whole of Market Advisor’ I have access to thousands or Mortgage products across the whole of the UK mortgage market.
I am both qualified and licensed to advise in the following areas:
- First Time Buyer Mortgages
- Self-Employed Mortgages
- Company Director Mortgages
- Tied Accommodation Mortgages (Teachers/Armed Forces)
- Existing Homeowner Mortgages
- Residential Remortgages
- Buy-to-Let Mortgages
- Buy-To-let Remortgages
- Bad Credit
- Complex Personal Circumstances
- Multiple Applicant Mortgages
- Lending into Retirement Mortgages
- HMO Mortgages
- Capital Raising
- Debt Consolidation
The amount you can borrow will vary from lender to lender as their criteria and affordability calculators will differ. However, the main factors that will dictate this are income and existing credit commitments.
Typically, you will need a minimum of 5% deposit although this can vary subject to economic climate and lenders attitude to risk. With risk comes reward and so the bigger the deposit you have the better the interest rates a lender will offer you.
This is subject to several variables such as interest rate, loan amount and mortgage term. The best way to establish this is to contact me to discuss your situation in more detail.
There are two main types of mortgage, fixed rate and variable rate.
A fixed rate mortgage gives you a fixed rate of interest and in turn a fixed monthly repayment for a given period. These would typically be for a period of 2, 3 or 5 years.
A variable rate mortgage is where the rate of interest applied to your loan varies in accordance with the interest rate set by the lender. This can be linked to either the Bank of England base rate or LIBOR. Your monthly repayment will move up or down in line with changes to the prevailing interest rate.
Equity is simply your share of the property you own. For example, if you have a property worth £500,000 and a mortgage of £400,000 then your ‘equity’ is £100,000.
LTV is an acronym for Loan to Value. This is a financial ratio that measures the percentage of the loan in relation to the value of the property. For example, a purchase of £500,000 with a loan of £400,000 would have an LTV of 80% – this means the loan has contributed 80% of the purchase price.
This measurement is a good indication of risk to the lender as the higher the LTV the greater the contribution to the purchase via a mortgage loan. As would be expected, the lower the LTV, the lower the risk for the lender and the better the deal they will offer on a loan.
There are several acronyms used interchangeably and they all refer to the same document. AIP (Agreement in Principle). DIP (Decision in Principle) and MIP (Mortgage in Principal). Put simply it is an indication of what a bank may lend based on specific details provided in respect of your income, expenditure, and debt. It is not an offer to lend.
Lenders are likely to make credit checks when you apply for a mortgage in principle. However, some lenders may make ‘soft searches’ and others may make ‘hard searches’.
A soft search records the credit check as an enquiry, whereas a hard search will mark that you have made an application for credit.
Having too many hard searches on your credit report could suggest to lenders that you may have difficulty in repaying your loans. Before making such applications for my clients I will always check with the lender whether they are run a soft or hard search.
The first meeting to discuss your situation is of no cost to you. This cost is covered by me. Should you wish to proceed after the initial meeting then there is a fee of £399 payable only upon receipt of your mortgage offer.
Note: Simon Law Mortgage Advice is a supporter of the NHS and will waive the £399 mortgage advice fee for life for all NHS employees. To qualify for this at least one applicant will need to be permanently employed by the NHS.
The best time to seek mortgage advice is once you have decided to purchase or remortgage a property. It is important before you view any properties or make any financial decisions that you seek advice first so that you have a clear understanding of how much you may be able to borrow.
- The Fact Find. This is a process of gathering all relevant information about you and your circumstances so as to accurately determine how much you can borrow.
- The Affordability Calculation. This is a high-level calculation that determines the approximate level of borrowing that may be available to you.
- The Mortgage in Principle. This is a more detailed assessment of your borrowing capability and involves a credit search. It is a formal application. While not an offer to lend it is a good indication of what you may be able to borrow.
- The Mortgage Application. The final step in the application process that requires full details of your circumstances as well as supporting documentation. It will be assessed and reviewed by an underwriter who will decide whether the lender is able to make an offer to lend.
- The Mortgage Offer. This is the goal. A formal offer to lend.
For a no obligation discussion about your requirements…
Simon was efficient, clear and communicative before during and after our mortgage process.We had specific requirements to which Simon met in order to find us the best mortgage for our second house move.Overall the experience we had with Simon was relaxed and professional.
Simon was amazing - he made the process of buying my first house easy and as stress-free as possible. Very highly recommended.
Simon helped us find the best mortgage option for us and also helped up find the right insurance polices. As it was my first time buying a house, that topped with buying a house in a foreign country, Simon was so wonderful at addressing my anxieties and reassuring me that I had his constant support.
Simon provided a wealth of initial advice on our eligibility for a mortgage, recommended the best products and deals, submitted the formal mortgage application to our chosen lender and answered our questions throughout the process.
Simon was extremely friendly and made us feel at ease straight away when buying our first house. He helped us with everything we needed to know.
We had no idea what we were doing as first time buyers! Simon spent the time with us to explain everything in a way that we understood. He gave us really good help and advice from our mortgage to getting house insurance.
We felt a bit out of our depth when our offer was accepted on our first house. Simon went above and beyond what we expected from an advisor. He understood perfectly our situation, and we never felt like we were just another client.