Independent Mortgage & Protection Advice Mortgage Top Tips

Flagstone’s very own Senior Mortgage & Protection Adviser, Michelle Shilliam addresses the recent media coverage surrounding the Mortgage Market & Interest Rates.

| How much can I afford to borrow?

Before looking for a property, it is important to look at the affordability available from lenders. Lenders do differ when it comes to how much you are able to borrow. A Mortgage Adviser will be able to check with lenders regarding this and give you a guide as to how much can be borrowed. Income, debts and other financial commitments are all taken into account.

| How does my credit score affect borrowing?

It is so important to have a good credit score as this will increase the chances of being approved for a mortgage. Paying your current bills and credit cards on time proves your creditworthiness to a lender. Reducing existing debt where possible and avoiding new credit applications will also help.

| How much deposit do I need?

The minimum deposit is normally 5% of the purchase price. The larger the deposit, the more favourable the rate will be, so if you do have access to more it is important to look at the differences this would make to you. There is a 100% mortgage available (at the time of writing) which does have certain conditions attached to it.

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| What documents are typically required for a mortgage?

When first approaching an Adviser you will need: identification, proof of income and bank statements so that they can assess your circumstances. There may be other documents that are required based on your circumstances, but you will be advised of these.

| Should I get an Agreement in Principle?

Once you have decided that you would like to purchase, it is important you obtain an Agreement in Principle (AIP) so you can show your mortgage potential when you offer on a property. Whilst they don’t guarantee that you would be accepted after a full review of your application, it does mean that your credit rating has been checked.

| How long does a Mortgage Application usually take?

This depends from lender to lender, but typically you should have approval in the way of a Mortgage Offer in 10 to 14 working days. The offer is normally valid for 6 months, during which the solicitors will be completing the legal transaction. A straightforward purchase should take between 12 and 16 weeks to complete.

| How will a fluctuating interest rate affect my mortgage?

If you are on a Standard Variable Rate or Tracker mortgage, your payments will be increasing in line with the base rate rises. If you are on a Fixed Rate, the changes to interest rates will not impact you until your Fixed Rate is due to end. If your current mortgage deal is due to end within the next 6-9 months, it is important to speak to an adviser.

| What should I do if my mortgage deal is coming to an end if interest rates are increasing?

Michelle Shilliam Senior Mortgage & Protection Adviser

Some mortgage lenders allow you to lock in new mortgage deals up to 6 months before your current product ends. So, if you are concerned that rates will continue to increase, you should speak to an adviser now.