Typically the larger deposit the better interest rate you will be able to access. As a first time buyer the most common deposits will be 5% or 10% deposits. There are some schemes that allow less than 5% deposit either by certain lenders accepting proof of historical rental payments as a evidence that you can afford to maintain mortgage payments.
Loan to Value is a key driver to access the best available interest rates, typically once you are taking out a mortgage of 50-60% of the value of the home you will have access to the lowest rates a particular lender can offer. Your Credit history also plays a vital role in establishing which lenders you will qualify for and the products available to you.
From a mortgage point of view the costs may be a valuation fee- if payable they will usually depend on the value and complexity of the purchase, lenders arrangement fees (these can often be added to the loan itself if required), mortgage broker fee, The main additional costs along the way will be survey fees, legal fees to solicitors, Stamp Duty Land Tax (Stamp Duty (SDLT)) & moving costs.
While some lenders may offer you the same terms and treat you as a first time buyer if you have previously owned a home more than 3-5 years ago. From a Stamp Duty point of view, if you have ever owned a property you’ll always be treated as a home mover, even if one party is a first time buyer.
While there is no set list of documents, expect to need Photo ID such as Driving Licence or Passport, Bank Statements, Payslips typically 1-3 months worth as well as recent P60s. Longer could be required if you need to demonstrate consistency of overtime, bonuses or commission to a lender. For Self Employed income proofs: Self assessments or for limited company directors accounts for last 2-3 years also. Having sight of your credit report will also help the process and avoid and unexpected dramas.
Life insurance pays out a sum of money either on the death of the insured person or after a set period
Life Insurance helps provide financial security for your loved ones if you are no longer around who may not be able to afford to maintain the lifestyle that they currently have without your income to provide for them.
The amount depends on your individual circumstances, such as mortgage, debts, income, and family needs.
Income protection insurance pays a regular income if you can't work due to illness or injury.
If you were too unwell to work, how would you cover your bills? Do you have savings to cover any shortfalls? Income protection steps in to help cover your living expenses when you are unable to earn an income.
Policies can pay out if you are unable to work for a set period such as up to 2, 3 or 5 years or until you can take out a full term policy return to work or retire.
Family income benefit is a form of life insurance and or critical illness cover that can stage tax free payouts over a period of years, usually designed to cover while you have dependants such as children, knowing that there will be a guaranteed payment either monthly or annually up to the agreed end of term.
Buy to let products start from 80% loan to value, so a 20% deposit would be the minimum required. However the amount a lender is willing lend on a rental property is dependant on the rental value the that property can achieve. Better interest rates become available for a 25% deposit or greater.
No! There are many options for non home owners to purchase a property to rent out before they purchase a residential property. For first time landlords there will be less choice of products available and some may assess the affordability of the mortgage against your own income also.
No! While plenty of buy to let lenders do have minimum income requirements. There are lenders who will accommodate clients with no or limited income.
Many lenders do have either minimum or maximum age requirements. Some lenders will insist on applicants being over 21 years old but there are also lenders who will lend on buy to lets from 18 and there are also lenders who will lend up to and above 85 years old.
This depends on many things such as your tax position, how many properties you intend to have within your portfolio etc & how you plan to rent the properties out. While we can't offer tax advice we can put you in contact with trusted accountants who we work closely with who will be able to offer advice specific to this.
If your buy to let property is mortgaged on a buy to let mortgage, you would be in breech of your mortgage contract with the lender. There are specific products for holiday let properties & the way lenders calculate holiday let rental is different to a standard rented out buy to let.
Yes, generally due to the degree of separation of ownership as the property is owned by the company rather than an individual creating higher risk to the lender. Although the majority of lenders will insist on independent legal advice to be taken and a personal guarantee.However, as Limited company buy to lets become more mainstream the rates are getting more competitive and closer to personal name buy to lets.
Generally due to the tax position and impact of potentially moving to a higher tax bracket, lenders will assess most personal buy to let mortgages on a stricter stress test to a limited company buy to let. Because of this more relaxed stress testing due to the tax treatment of the limited company, the lending for a limited company can be more generous that on a personal mortgage.
At the very minimum you need a deposit equal to 5% of the purchase price of your new home.
Generally speaking, the smaller deposit you put in, the higher the interest rate will be on your mortgage, this is because it's riskier for banks to lend money when the mortgage makes up a substantial amount of the property value.
An exception to this lies within the Help to Buy Equity Loan Scheme; in this scenario, you can have a 5% deposit but take out a 75% mortgage deal, that's because the government will provide you with a 20% equity loan, taking your 5% deposit up to 25%, this does come with it's terms and conditions of course and there are a number of things to consider when looking at Help to Buy.
The amount you can borrow on a mortgage is calculated slightly differently by each lender. Generally, the mortgage provider will look at your income and expenditure in order to come up with a maximum amount they are willing to offer you.
Typically, this amount is somewhere between 4 and 5 times the annual income for all applicants but also takes in to account monthly credit commitments and regular outgoings.
Mortgages can be complicated and stressful things to arrange when you're going it alone, and even if you manage to find one for yourself, chances are it won't be the best deal for you.
Not only will a quality mortgage adviser be able to find you the very best deal available on the market, but they'll provide you with an unrivalled level of support and guidance throughout your home buying journey.
Not only that but there can also be a number of different cogs involved in buying a property, from lenders to solicitors and valuation providers, all requiring different paperwork and information from you.
A mortgage adviser will manage your entire case for you, ensuring an efficient process through to completion.
When applying for a mortgage, your chosen mortgage lender will ask to see a number of documents from yourself in order to evidence the information you have provided them with and also to pass their fraud and money laundering checks.
The documents you are asked for by the lender will vary depending on your employment type, what type of mortgage product you are applying for, and the bank's specific criteria.
This is a tricky question to answer, it really depends on the extent of the bad credit, when it took place and whether it's clear now or not.
That being said, there are a huge range of lenders in the mortgage market and each of them view credit scores in different ways, so even with some bad credit issues, it's still possible to get a mortgage.
We've even got relationships with banks that design mortgages specifically for people with a poor credit history.
Depending on searches, the length of the chain (how many people are moving home in the process) as all deals in a chain to complete at the same time this can take time for solicitors to arrange a suitable time frame for all parties.
Gloucester Mortgage Centre are authorised and regulated by the Financial Conduct Authority, FCA registered (http://www.fca.org.uk/register) under reference 300783.
The Financial Conduct Authority does not regulate Buy to Let Mortgages.
Gloucester Mortgage Centre may charge a fee for arranging your mortgage. Typically £495, the actual fee will depend on your circumstances.
Your home may be repossessed if you do not keep up with the repayments on your mortgage.
Information contained within this website is subject to UK regulatory regime and is therefore targeted at UK consumers.
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