All major banks and building societies have agreed with the government to offer three-month repayment holidays for anyone struggling with their repayments because of Coronavirus. If you need help, get in touch with your lender.
For new mortgage applications, because of the cuts recently made to interest rates, a lot of tracker mortgage products are being removed by major lenders. That doesn’t mean you can’t find a good fixed-rate deal, though.
Get one step closer to finding the right deal for you by viewing a range of mortgages you’re eligible for before you apply. - First, decide what type of mortgage you need:
First home mortgages are for those who have never owned or inherited residential property before.
You won’t qualify as a first-time buyer if you’ve ever owned a commercial property with living accommodation, or if you’re looking to buy a property with someone else who’s previously owned a home of their own.
These mortgages are suitable for those who are planning on or considering moving house.
Some mortgages can be taken with you to use on a new property. Just be aware that your credit score will be rechecked and there may be complications if the new property is worth significantly more or less than your current one.
If your current mortgage deal is about to end, if you want to save money on your existing repayments, if you want to borrow more money or if you want to switch to a repayment mortgage, then remortgaging to a better deal might be right for you.
Online mortgages, advice from real people
You can speak to a professional mortgage broker at any time.
We’re real people, and we want to give you real support.
Our brokers will always be there to answer your questions and can handle your mortgage application for you, all online.
Here are nine things that could help you get a mortgage:
Lenders will check your credit history against its criteria to show you your chances of approval
This affects your credit score, so it’s important for anyone looking to apply for a mortgage
A higher deposit means you won’t need to borrow so much and you’re likely to be offered better rates
Paying your bills regularly and on time will be reflected in your credit score and shows lenders your reliable
Use an eligibility checker to find out which mortgages you qualify for without affecting your credit score
If you want to buy a home with someone else, getting a joint mortgage with them can mean you can borrow more, as long as they’ve managed their finances well in the past
You’ll need to budget for expenses like conveyancing fees and survey costs
It can take a while to build or repair your credit score. Mortgage lenders can check the last six years of your credit history, so it’s worth preparing early
There are plenty of options when it comes to getting the right mortgage for your circumstances. Compare those you’re eligible for to find the right deal for you
If you have problems with your credit history, your ability to get a mortgage might be affected, but there are some lenders that will consider your application.
You might be asked to provide more extensive proof that you can afford repayments and you’ll be asked about previous credit problems.
Interest rates and fees are usually higher than for residential options, but you’ll need this type of mortgage if you intend to rent out your property.
You just pay the interest accrued on your mortgage each month, and don’t repay the capital. You’ll need to repay the capital at the end of the mortgage term, so you’ll need a plan for how you’ll do this like separate investments, or simply selling the property.
These mortgages are relatively scarce, as most lenders require a deposit of at least 10%.
While you might be able to find a lender that requires only 5%, these low-deposit mortgages usually come with higher interest rates and fees.
Self-employed mortgage applicants will need to provide two to three years’ worth of accounts to prove you can afford a mortgage.
Lenders are less likely to lend on homes of non-traditional or unusual construction. - You might have to put down a higher deposit, or you’ll be offered higher rates.
A mortgage is a loan to buy a house and the property you buy is the security for the loan.
Choosing the right mortgage is an important financial decision and it’s important that you know you can afford one.
This will depend on a number of factors, such as salary, other income, bonuses, tax credits and maintenance payments.
Lenders will consider all these things to assess what you are able to loan and repay.
Many lenders will ask for at least 10%, while some of the best rates are only available to borrowers with a deposit of 25%.
However, there are government schemes such as Help to Buy and Right to Buy that will help you access a mortgage with lower upfront costs.
Most mortgage terms are between 15 and 30 years, but you can get terms for longer or shorter periods.
A broker is a mortage expert with knowledge of all products and lenders on the market for a fee. They work on your behalf to search the mortgage market to find a mortgage you can afford and apply for successfully.
Once they've reviewed your income and expenditure, the size of your deposit and the details of a house sale, the broker will advise you which mortgage products are affordable in your situation for a fee.
They'll make you aware of the interest rate, benefits (like cashback), or fees which will affect how much you pay for your mortgage.
Brokers usually have access to the whole market unless the lender chooses not to give brokers access to their products. Even then, the broker can see the details of the mortgage, but won't be able to complete the transaction for you. To get access to these mortgages, you'll have to approach the lender directly. However, if you buy a mortgage that's unsuitable or unaffordable, or the lender rejects you and damages your credit score, you are fully responsible for the purchase and outcome.
Brokers either charge a flat fee, around 1% of the mortgage value, or a commission based on the size of your loan. The broker must tell you what you're going to pay before you agree to the mortgage. The cost's illustrated in the 'keyfacts' document outlining your mortgage repayments, fees and charges.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
PLEASE NOTE: THE FCA DOES NOT REGULATE MOST BUY TO LET MORTGAGES
For online mortgage comparison and advice Gocompare.com introduces customers to MortgageGym Limited which is an Appointed Representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority. MortgageGym partner brokers will charge a fee, which is payable when your mortgage application is submitted. The fee will depend on your circumstances and will be discussed with you at the earliest opportunity. Gocompare.com holds a controlling investment in MortgageGym Limited.
Intermediary Mortgage Lenders Association (IMLA) Mortgage Market Tracker, Q1 2019.