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FAQ

What does a mortgage broker do?

In short, a mortgage broker is a knowledgeable individual who can guide you through the mortgage process, and do so by shopping your loan scenario with any number of lender partners, instead of just one. A mortgage broker connects mortgage lenders to borrowers, as opposed to you working directly with a retail bank/lender. If you’ve been denied in the past, or have a tricky scenario, a mortgage broker could be just the ticket to get that loan approval. Some of the deals that mortgage brokers have access to are not available directly to customers. It’s, therefore, always worth checking whether they can help you obtain a better deal. They may also provide a more personal experience if you want a hands-on approach as opposed to say a call centre or big bank.

Agreement in Principle / Decision in Principle

An agreement or decision in Principle is beneficial to First Time Buyers or those moving home and purchasing a new property. In brief it is a conditional mortgage offer from a lender, prior to the submission of a full mortgage application. It is one way of illustrating that you are credit worthy and can secure a mortgage loan and confirm to estate agents/vendors you are in a positive position to secure a mortgage loan and serious about buying the property. Therefore, more likely that your offer is considered / accepted.

We would encourage you to always seek professional advice from a broker to ensure that you are note impacting your credit file negatively via decision in principle applications that could leave a hard footprint on your credit file. A broker will have an understanding of your circumstances and determine which lender you fit best before applying for a decision in principle.

With all mortgage applications we would advise you to be registered on the electoral roll at your residential address which should correspond to the address on your bank statements / driving licence etc, as this will help lenders to confirm your identity.

Can I get a mortgage if I have a poor credit file / bad credit?

Don’t assume a poor credit score or adverse credit history (defaults, late payment, bankruptcy) will mean you can never secure a mortgage, this is not always the case.

Different credit issues carry less weight than others, for example lenders will consider the level of bad credit you have, how long it’s been since it occurred and has been settled etc.  We work through different lenders criteria to determine if you fit any lenders based on your current credit history.

As you can appreciate mortgage deals available for bad credit situations may have higher rates and associated fees and potentially depending on your credit file score / history may require a larger deposit.

Hence to ensure you get best advice it is always best to speak to a mortgage broker who can discuss the options available in line with your situation.

With all mortgage applications we would advise you to be registered on the electoral roll at your residential address which should correspond to the address on your bank statements / driving licence etc, as this will help lenders to confirm your identity.

How Can Improving My Credit Score Help?

Your credit rating and credit history will have a direct impact on the amount of loan a lender will consider lending and if they will accept or decline your application for a mortgage. We would always request a credit report for new clients/ first time buyers or any one re-mortgaging that may have had adverse credit since they took out their last mortgage. Please refer to CREDIT SCORE (kw-mortgages.com) for more information on ways to improve your credit score.

Can I get a mortgage if I’m self-employed?

While it may seem more difficult to acquire a mortgage if you are self-employed, you can still acquire and apply for a mortgage. A few key things so that you have more lender options is to have at least 2 years – financial documents (i.e., Accounts or Tax calculations / SA302s & corresponding tax overviews). Also, Business and personal bank statements covering 3 – 6 months again lender specific criteria will apply. Also refer to CREDIT SCORE (kw-mortgages.com) on the key points to consider to ensure you have a healthy credit file / score at point of mortgage application.  With all mortgage applications we would advise you to be registered on the electoral roll at your residential address which should correspond to the address on your bank statements / driving licence etc, as this will help lenders to confirm your identity.

 

What Fees Are Involved When Buying A Home?

Stamp Duty

Stamp Duty is a tax paid to government when buying a new home. If you are in Scotland, it will be Land and Buildings Transaction Tax (LBTT) and in Wales it will be Land Transaction Tax (LTT). If you are in England or Northern Ireland, it will be called Stamp Duty.

Stamp Duty is calculated based on the value of the property you’re buying, PLEASE refer to below calculator

Stamp Duty Calculator: Before & after SDLT holiday calculations

Arrangement Fees

Different lenders charge a fee for securing the mortgage rate and loan with them, this fee amount varies between lenders and there are some lenders that offer products with no arrangement fees. The broker will discuss these fees with you so you are clear on the benefits of securing a fee versus a non-arrangement fee lender product rate.

Valuation Fees

For all mortgage loans a lender will require if you are purchasing a property or re-mortgaging to another lender that the property is independently valued, and these fees will vary between each lender.  Some lender products come with a “free standard valuation” for mortgage purposes. The Broker will discuss these fees with you, and the different types of valuations available to you.

Legal Fees

For purchases you will need to appoint a solicitor to carry out your conveyancing and if re-mortgaging can either use your own solicitor or a lenders standard free legal option. If using your own solicitor, they should be able to supply a quote detailing standard conveyancing costs and any other associated costs i.e., local authority searches. They will also be required to be on a lenders solicitor panel at point of mortgage application.

Broker Fees

Where we charge a professional fee, the fee is payable on receipt of a formal mortgage offer, and is non-refundable should your mortgage or loan not go ahead / proceed to completion.  Our professional fee if applied will be £250 for residential mortgages and £300 for Buy to Let / Let to Buy Mortgages. We will also be paid a procuration fee from the lender. The amount of the procuration fee will be disclosed to you. You have the right to ask us to provide information on the range of procuration fees that the lenders on our panels offer to us.

 

What documents do I need to provide to get a mortgage loan?

Standard required documents to support a mortgage application:

  • 3 months bank statements
  • 3 months pay slips / 13 weekly pay slips / 4 x 4 weekly pay slips / 6 x fortnightly pay slips
  • Self-employed – Latest 2 years tax calculations & corresponding tax overviews (SA302s)
  • Statement of deposit for purchasing a new home.
  • Debt consolidating some credit commitments to the mortgage loan – all credit commitments balances and redemption statements for those debts being consolidated.
  • Benefit income:
  • Bank statement for child benefit
  • Award letter for PIP/ ESA / DLA
  • Tax credit award letter for child & working tax credits
  • Universal credit statements
  • Right to buy letter if purchasing a new home.

 

What is Porting a mortgage?

Porting a mortgage is the process of taking your existing mortgage deal on your current property and transferring it to your new home. Although, Porting is a great flexible feature there are no guarantees your lender will accept an application to port, further if acceptable you could end up borrowing at an uncompetitive rate to port. Most (although not all) mortgages are portable, but even if yours is, it's worth looking into whether it's the right option for you.

 

Buy to Let (BTL) Mortgage?

Is a property you do not intend to reside in rather you are purchasing to rent out for profit. Usually for BTL’s in Northern Ireland a few things may apply (lender specific)

  • 25% deposit is required
  • Usually, an owner occupier or be on the deeds of another property ( you are limited to First time buyer & first time landlord lenders)
  • Have a minimum salary of at least £20,000 - £25,000 (Not all lenders have a minimum, but most do)

It’s illegal to rent out your current home if you have a standard residential mortgage but you can do so if you have Consent to let approval from your lender, or you re-mortgage to convert the mortgage to a buy to let / let to buy.

You should be aware of the additional tax implications associated with BTLs

  • 3% higher stamp duty will be due on your Buy to Let property than on residential properties
  • Income tax is payable on both your rental income and any profits from the sale of your property, should you sell it
  • Capital gains tax is payable when you sell the property

We advise you to always seek advice from a tax specialist.

 

The Financial Conduct Authority do not regulate some forms of Buy to Let.

 

What happens if you don’t Re-mortgage after your existing deal expires?

You will automatically transfer onto your lender’s SVR, which is likely to be higher than the rate you are on and your monthly repayments will increase. There is no legal requirement to re-mortgage, but if you are in a position to do so it is difficult to justify remaining on a higher rate and paying more when you could reduce your rate and pay less per month or pay similar but reduce your mortgage years so it is paid off sooner.

A lenders SVR (standard variable rate) is set by the mortgage lender and they can change anytime at their own discretion, which will reflect in your mortgage payments. If you find yourself on a SVR or about to enter into one it is recommended you speak to an advisor to ensure you do not have any alternative options available to secure a lower rate/ payment etc via re-mortgaging.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

The Financial Conduct Authority does not regulate most Buy to Let Mortgages.

You may have to pay an early repayment charge to your existing lender if you re-mortgage.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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How to find us
155 Spencer Road Derry-Londonderry BT47 6AH

CONTACT

Kelli Wilson trading as KW Mortgages is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of First Complete Limited. First Complete Limited is authorised and regulated by the Financial Conduct Authority. 

Your home may be repossessed if you do not keep up payments on your mortgage.

We do not charge a fee for initial consultation or insurance advice. However, depending on your circumstances and the mortgage product, if we charge a fee it will range from £250 - £300, which will be payable on receipt of a formal mortgage offer. The fee will be discussed and agreed with you at initial consultation.  

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

+44 7834 029614
office@kw-mortgages.com
Kelli Wilson trading as KW Mortgages is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of First Complete Limited. First Complete Limited is authorised and regulated by the Financial Conduct Authority. 

Your home may be repossessed if you do not keep up payments on your mortgage.

We do not charge a fee for initial consultation or insurance advice. However, depending on your circumstances and the mortgage product, if we charge a fee it will range from £250 - £300, which will be payable on receipt of a formal mortgage offer. The fee will be discussed and agreed with you at initial consultation.  

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

© 2022 KW-Mortgages | Kelli Wilson Mortgages & Protection
© 2022 KW-Mortgages | Kelli Wilson Mortgages & Protection
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