0800 0380098

What is a mortgage broker?

A mortgage broker is someone who works with clients to arrange their mortgage, typically advising on the right mortgage and dealing with the application process. Mortgage brokers must be authorised by the Financial Services Authority (FSA) to give advice to clients.

How much can I borrow?

There are many factors which determine how much you can borrow including the value of your property, your income, your employment status, any existing financial commitments you have and whether you have experienced any financial difficulties in the past.

The amount you can borrow will vary from lender to lender depending on how they view the above factors.

At equate we know the rules each lender works to which means we can identify the best option for you.

How do I prove my income?

The criteria for proving income will vary from lender to lender.

If you are employed, your last 3 months wage slips and latest P60 may be requested.

If you are self employed, copies of your last two or three years financial accounts or a letter from your accountant are usually requested. If however you do not have full accounts some lenders will consider alternative information.

What does 'approved in principle' mean?

When a mortgage has been ‘approved in principle' it means the lender has made a conditional offer. The offer is generally based on basic information and is subject to further underwriting when an application containing full details along with supporting evidence is submitted.

This process often helps people who are still looking for property to purchase to know they can make an offer with confidence and may sometimes be required before an estate agent is prepared to accept your offer to purchase a property.

How long can the term of the mortgage be?

Traditionally mortgages have been written over a 25 year term. However, some lenders will allow the term to be stretched to 35 or even 40 years although they typically look for the mortgage to be repaid before retirement. There are even a number of lenders who will allow the mortgage term to stretch into retirement subject to there being sufficient income to fund the mortgage payments.

What is a mortgage valuation report?

The mortgage valuation is carried out on behalf of the lender to ascertain whether the property is suitable for them to lend money against. The mortgage valuation is purely for the lender's information and does not provide any detailed information about the condition of the property.

More detailed reports are available in the form of Homebuyers Reports or Full Structural Survey Report. These will give a detailed overview of the condition of a property identifying any essential repairs or areas of concern.

What is a valuation fee?

This fee must be paid to the lender when you apply for your mortgage to allow them to instruct a surveyor to complete a mortgage valuation. Occasionally some lenders will offer a free valuation as part of their overall package.

What are the different kinds of valuation or survey?

1. Mortgage valuation
   This is paid for by the applicant and provides a report to the lender on the suitability of the property for mortgage purposes. It has limited detail and is purely for the lender's use.
2. Homebuyers Report
   This provides the same detail as above but also provides the purchaser with a report on the general condition of the property which details recommendations for any essential works, areas for concern or suggested specialists it may be beneficial to have visit the property.
3. Full Structural
   This report provides the basic mortgage valuation information to the lender along with a more detailed report for the applicant. It will include detailed information on the construction of the property in addition to identifying any areas of concern and essential repairs.

What is conveyancing?

Conveyancing is the legal work involved in buying or selling a property. It is often carried out by solicitors although there are some specialist licensed conveyancing firms also available.

Unlike mortgage advice, conveyancing services are not regulated by the Financial Services Authority.

I have a repayment mortgage. Can I change to an interest only mortgage?

This is possible, although the criteria will vary from lender to lender. By speaking to us we will research the market on your behalf to identify the best solution. We will also explain the consequences of converting to an interest only mortgage.

I have an interest only mortgage. Can I change to a repayment mortgage?

Most lenders will allow you to switch the repayment type at any time during the mortgage term although some will charge an administration fee for this service. You should check with the lender or your broker should you wish to switch to repayment method to make sure you are not exceeding any lump sum reductions restrictions imposed by your lender as failure to comply with this may result in you being charged early repayment charges.