FAQs

We understand that you may have some questions about our products and services, and we’re here to provide you with the answers you need.

Our team has compiled a list of the most commonly asked questions to help address any concerns you may have. If you can’t find the information you’re looking for, feel free to reach out to our team, and they’ll be happy to assist you. We strive to provide you with the best possible experience, and we’re committed to ensuring that all your queries are resolved promptly and accurately.

Below you’ll find the answers to the questions we get asked the most but please contact us if you have any further questions, or alternatively you can speak to our AI chatbot.              

 

A mortgage broker, or mortgage adviser, acts as an intermediary between you and the lender, to arrange your mortgage. All mortgage brokers in the UK must hold a recognised qualification and be authorised by the Financial Conduct Authority. You should always check to make sure your broker is qualified and authorised before you do business with them.

A whole of market mortgage broker has access to a wider range of lenders than a “tied broker” who is tied to one particular lender or a limited group of lenders. Because they work with a larger number of banks, building societies and specialist lenders, a whole of market mortgage broker can find many more products and can help customers who have a wider variety of needs.

As well as finding out how much you want to borrow and for how long, a mortgage broker will also ask a bit about your personal situation, like your employment, your income and outgoings, and any other financial commitments you already have. They’ll also ask you about your longer term needs and goals, and look at other related financial products that might be suitable for you, such as insurance.

It’s like having a friendly conversation and this information helps the broker to find the mortgage that’s best for you.

An Agreement in Principle or a Decision in Principle is an acknowledgement from a lender, letting you know how much they might be prepared to lend you. It’s not legally binding, and the amount they are prepared to lend could change once the full mortgage application has been completed, but it gives you a good idea of the amount you could borrow.

Conveyancing is the legal work that is carried out by a solicitor or conveyancer to transfer the ownership of property from one person to another, during the house selling or buying process.

Yes. Lenders do not offer 100% mortgages and as a minimum, you will need at least a 5% deposit. Generally speaking, the larger the deposit, the less you’ll have to borrow and the better your rate will be.

Mortgage equity is the amount of your home that you own outright (how much of your home is mortgage-free) when compared to its value.

A fixed rate mortgage is one where the interest rate is “fixed” for a set amount of time. During this time, no matter what’s happening with interest rates, your rate will not change. At the end of your fixed rate period, your mortgage will move on to the lender’s Standard Variable Rate.

Fixed rate mortgages can give you peace of mind, in knowing that your mortgage payments are going to stay the same for a certain period of time. The most common fixed rate mortgages last for between 2 – 5 years, although there are some lenders that offer 10 year fixed rates.

A tracker rate mortgage “tracks” the Bank of England’s base rate. Your rate will be the base rate, plus a certain percentage, depending on the lender. If the base rate goes up, then so will your monthly mortgage payments. Likewise, if the base rate goes down, then your monthly payments will, too.

A discounted rate mortgage is a variable rate mortgage, and is like a tracker mortgage. However, a discounted rate mortgage is linked to the lender’s standard variable rate – or SVR – rather than the Bank of England’s base rate. The rate is set at a fixed percentage below the lender’s SVR, and your monthly mortgage payments will follow this, in the same way a tracker will.

And, like a tracker, your payments can rise and fall, depending on how the lender’s SVR changes. The lender can change their SVR at any time – regardless of whether the base rate has changed.

A standard variable rate mortgage follows the lender’s SVR, but without the discount. You’ll automatically go on to this type of mortgage at the end of any introductory fixed, tracker or discounted deal.

A capital repayment mortgage is one where your monthly payments go towards paying off both the capital amount (the amount you borrowed) and the monthly interest payments. As you make your payments, your mortgage balance will go down, meaning that by the end of the term, you will have paid off your mortgage in full.

An interest only mortgage is one where your monthly payments cover the interest that is charged each month – but not the capital amount (the amount you borrowed).

At the end of the term, you will have to pay off the capital amount in full, using a lump sum. Most people do this by cashing in a pension or investment, or by selling the property and downsizing.

An offset mortgage is linked to a savings account and every month, the amount you have in the savings account is offset against the amount you owe on your mortgage. This lowers the total interest you’re charged on your monthly repayments.