Understanding the different types of mortgages that are available

There are a wide variety of mortgages available right now, meaning that whatever your circumstances, we can work together to find you a mortgage – even if your circumstances seem unusual or tricky and even if you’ve been turned down by other mortgage advisers.

understanding mortgages

Do you offer a mortgage tailored to my particular circumstances?

Yes, that’s correct. There are so many types of mortgages available and a multitude of lenders that offer them, that our advisers will recommend which is the best suited, based on your individual circumstances and how that matches to the lenders’ criteria.

 

How do I know which type of mortgage is most suitable for me?

Our advisers will need to learn more about you, your job and your personal and financial circumstances in order to determine which type of mortgage you’re best placed to apply for.  We will get to know you and your situation, to ensure we can use this information to advise on the best lender for you.

What do I need to provide to successfully complete a mortgage application?

No matter what type of mortgage you apply for, there are certain things that you’ll need to provide us to help move your application forwards. Although some of these items on the list may not apply to every applicant, in general you will need to provide us with:-

  • Three months bank statements for all active accounts
  • Proof of ID (typically either a drivers licence or passport)
  • Utility Bill (dated within the last 3 months, or the most recently issued if it is a Council Tax Bill)
  • Copy of your credit report (we can recommend a free service which is easily accessible)
  • Payslips – the last 3 months worth (if you have this many)
  • If self-employed, we’ll need somewhere between 1 and 3 year’s accounts depending on the type of mortgage you’ve applied for
  • Again if self-employed, your SA302’s and Tax Year Overviews
  • If a contractor, your current and previous contracts
  • Information about where your deposit is obtained from
  • Savings account statements if that is where your money is sitting either from yourself or from your family member
  • If a family member has provided all or part of the deposit, we will eventually need a signed letter from them which declares it is a ‘gift’ rather than a loan
  • Your permission to conduct a credit search on your behalf to obtain a credit score for the application

It is important to remember that this list is not exhaustive, there are some lenders who may require some additional or supporting documents, requested at their discretion.  There are some that may not ask for all of these either – but this is where having a mortgage adviser that knows all of this and can communicate with the lender, really does help in obtaining the right mortgage for you.

Remember, the quicker you can provide us with all of the supporting information requested the quicker we can process your application.

Who is most likely to benefit from a Limited Company Director mortgage?

If you’ve been a Limited Company Director for nearly (or more than) 1 year, we can talk to you about whether a Limited Company Director mortgage is right for you.

There’s lots of things to consider with this type of mortgage, so the best way to proceed is to either talk to one of our team or fill out our ‘Find A Mortgage’ enquiry form and we’ll be straight in touch with you to see if we can help.

How do I know if a Contractor Mortgage is right for me?

Even if you’ve been turned down for a Contractor Mortgage by other companies, or told you don’t meet the criteria by a mortgage broker elsewhere, we’d like to speak with you to see if we could help.  If you have been contracting for less than a year, you can still get a mortgage!

Our team are specialists at the sometimes complex area of Contractor Mortgages, and we know in advance which of the countless number of lenders out there will consider you with only 1 years accounts, for example, or with day rates to take into consideration.  It’s always worth asking for our advice, and we’re always happy to give it.

Who needs a Sole Trader mortgage?

If you’re self-employed and work solely for and by yourself, running the entire business and have not become a Limited Company then you will be treated as a Sole Trader.  This means that lenders will want to know your net profit, for the last 1 – 3 years and you’ll need to provide additional proofs from HMRC and possibly, a qualified accountant.  

You can file your tax return from the 6th April for the previous tax year, meaning you could get a mortgage sooner than you think.  Remember, you have until January 31st the next year to complete your tax return without incurring a penalty.

Do I need to provide additional information if I’m applying for an Adverse Credit mortgage?

In all likelihood, yes. You’ll need all of your bank history, detailed information about income and outgoings, as well as proof that your credit problems are in the past.  We ask everyone for a copy of their credit file, but it will be most important for you to send this as early as possible, so we can build an explanation of your circumstances.

The most successful Adverse Credit mortgage applicants are those that can prove that their monthly circumstances have been better recently, and that they now manage their monthly finances on a successful and timely basis.

So long as your credit problems are in the past, you should be able to apply for a mortgage even with bad credit. However, you should be aware that most lenders will want to see additional proofs and evidence from you and that you will likely be asked to provide a lot of information in support of your application.

I don’t really understand all the different types of mortgages, can you help?

That’s what we’re here for! Our advisers will help to demystify all of the options open to you, and help find the right one that best suits your circumstances.

Do you give mortgage advice over the phone, or face to face?

Both, so whichever suits you best. We’ll communicate with you in the way that best suits you, whether that be by email or phone is down to you. If you’re near to Harrogate you can even make an appointment to see us in person if you prefer – the choice is entirely yours.

I’ve been turned down for a mortgage in the past, is it worth me applying again?

It’s absolutely worth you speaking to one of our skilled staff to determine what the reason was that led to you being rejected previously.  If there are alternative options to consider, then we will suggest those and look to take this further for you.  Don’t be too disheartened and do speak to us as we may be able to help.

By | 2019-08-23T19:19:32+01:00 June 19th, 2019|