What is a mortgage and how do I get one?
The average house price in the UK is now ten times the average full-time salary. Very few people can therefore afford to buy a home outright, which is why most people need a mortgage. Getting a mortgage could be the biggest financial decision you will make, and so we are here to help you get it right.
A mortgage is a loan secured on a property that is used to fund the purchase of a property. Lenders will only give mortgages to people who meet certain criteria, and will only usually give mortgages to people who can pay a deposit (although some lenders offer 100% loan to value (LTV) mortgages). The deposit amount is a certain percentage of the value of the property.
There are different types of mortgages, such as fixed rate, variable rate, and interest-only mortgages. We will help you choose the best type of mortgage for you.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
What is a Decision in Principle (DIP)?
A DIP is a certificate or statement from a lender to you or a mortgage broker (like us) that declares a lender would be willing to provide you with a mortgage "in principle" based on the information you provide such as evidence of your income and credit checks. A DIP is usually provided before a formal mortgage application is made.
A DIP is helpful because it helps you understand what lenders would be willing to provide you, and it also shows sellers that you are a serious prospective buyer.
It is important to know that a DIP is non-binding and is NOT a guarantee of a mortgage offer. Only when you go through the full application process will the lender make a final decision.
I'm thinking about getting a mortgage. What's next?
It's simple: tell us about you over the phone or via the application form on this website (click "Get Started"), and we will contact you to arrange a free initial consultation. If you're happy to move forward with us, we'll match you with a competitive mortgage. If you are happy to proceed, we'll apply on your behalf and manage the whole process through to completion.
Before our consultation, we will need you to provide us with the following:
- Information on how much your outgoings are, including expenditure on any dependants, holidays, and pension contributions.
- Bank statements showing what goes out of your account each month.
- Evidence of your income, including any bonuses or overtime. The lender will want to see your payslips as proof or your accounts if you are self-employed.
- Proof of deposit.
- ID to prove your identity and current address.
- Details of the property you want to buy.
- Contact details for your estate agent and solicitor.
How can I check what mortgage amount I can afford?
You can use the mortgage calculator on this website to check how much you could be paying, however, the calculator won't take into account some very important factors such as debt levels, dependants, age, or credit score, so it should be taken as a guide only.
Once we have taken your details (click "Get Started"), we can give you a much better idea of what you can afford.
How long does it take to get a mortgage?
We can usually get you a formal mortgage offer in just 10 working days, but it varies depending on a number of factors. We'll give you an estimate of how long it will take when you decide to apply with the lender we recommend.
When you complete the application form on our website (click "Get Started"), over the phone or in person, it shouldn't take you longer than 10 minutes, however, our job is to fully understand your needs and circumstances, so you can take as long as you need when you speak to us.
A straightforward case may be covered in a 5-minute conversation, whereas a more complex one might need half an hour; we'll always take the time to listen and make sure we've got everything right before matching you with a mortgage.
We will keep you updated at every stage of the process.
Can I meet a mortgage advisor face-to-face?
Our customers are based all over the country, but our offices are in Buckhurst Hill, London. We can usually meet you face-to-face depending on where you live. We can let you know once we take your details.
I already have a mortgage. Am I paying too much?
1 in 4 people with a mortgage are paying too much. We can usually recommend mortgages with lower repayments, depending on your circumstances.
What other products do you offer?
We offer a comprehensive range of mortgage products from across the market. We offer both first and second charge mortgages, but not deals that you can only obtain by going direct to a lender. For those seeking to increase their existing borrowing, alternative finance options may be available and more appropriate for your needs. For example, a further advance from your existing lender or an unsecured loan (e.g. a personal loan). For those seeking a Retirement Interest Only MortgageÂ, a Lifetime MortgageÂ may be available and more appropriate for your needs.
We are also insurance intermediaries who offer products from a range of insurers based on a fair and personal analysis of the market for Buildings & Contents, Accident Sickness & Unemployment and Private Medical Insurance.
We are also Credit Brokers. This means that if you require a loan other than a mortgage (e.g. a personal loan) we can refer you to a specialist third party who can discuss your specific needs with you. We will not advise you on this type of borrowing and you will need to make up your own mind whether to go ahead with it or not.
As part of the TenetLime Limited Network of Financial Advisers we have access to support services and specialist expertise you would normally expect from a large organisation. Where it is in your best interests, we may offer to refer you to another firm within the same Network.
Are you covered by the Financial Services Compensation Scheme (FSCS)?
Yes, we are covered by the FSCS. You may be entitled to compensation from the scheme if we are unable to meet our obligations. This will depend on the type of business and the circumstances of the claim. The FSCS only pays compensation for financial loss and the limits are per person per firm, and per claim category, as listed below:
Long Term Insurance Contracts: Arranging and advising on long term insurance contracts (e.g. a life insurance or critical illness policy) is covered for 100% of the claim without upper limit.
General Insurance Contracts: Arranging and advising on compulsory classes of insurance (e.g. employers liability), professional indemnity insurance, and general insurance contracts that pay out on death or incapacity due to injury, sickness, or infirmity (e.g. an accident & sickness policy) is covered for 100% of the claim without upper limit.
Arranging and advising on other types of general insurance contracts (e.g. Building and Contents) is covered for 90% of the claim without upper limit.
Mortgages: Arranging and advising on mortgages is covered up to a maximum limit of Â£50,000 per person per firm. Further information about the FSCS is available from their website: www.fscs.org.uk.