Mortgage
Why do I need a broker, can’t I just go to my bank?
The main advantage of using a broker as opposed to your own bank is the access to a wider choice of lenders, independent advisers can access the whole of the market where as banks will only offer their own products which may not necessarily be the best suited to you.
What is a capital and repayment mortgage?
A repayment mortgage is a term generally used in the UK to describe a mortgage in which the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest, so that the amount borrowed decreases throughout the term and by the end of the loan term has been fully repaid.
How do I arrange a Decision in Principle?
The initial stage in mortgage application process can be known as; Decision In Principle (DIP), Agreement In Principle (AIP) or a Mortgage Promise… they are all the exact same thing.
Your broker will be able to arrange a DIP for you. They will learn about you and your requirements and apply on your behalf to a suitable mortgage lender. All being well the lender will provide you with a certificate which you can present to Estate Agents to prove you have been accepted in principle for a mortgage.
How much can I borrow for a Mortgage?
‘How much can I borrow?’ is the most common question asked by people looking to raise a mortgage.
The answer is not simple, it involves multiple personal factors on income and expenditure as well as varying lender criteria. In April 2014 the F.C.A released new regulation called the Mortgage Market Review (MMR). This regulation tightened up affordability checks and put more responsibility on mortgage lenders to ensure borrowers could afford the mortgages they were taking out. Since MMR lenders hide behind affordability calculators which ask a range of questions relevant to their criteria and then produce a maximum mortgage amount.
Your brokers job is to find out all they can about your income and expenditure and research the market to find a mortgage suitable for your needs. We have a handy affordability calculator on this site (click here) which will give you a very rough idea of what could be a reasonable expectation but please ask your broker for a more accurate figure as this is just to be used as a ball park guide.
Every lender has their own criteria when it comes to what they will and will not accept for income. Some lenders will look at and take 100% of your bonuses, overtime and commissions into consideration while others may only take 50%. It is also common for lenders to have varying opinions on your expenditure, some will take pension payments and child care costs into their calculations while others will ignore them and have built it into their calculations already.
Due to the complex nature of affordability we would always recommend taking Independent Advice on your situation.
Mortgages to Purchase a Property
Mortgages to purchase a property a fee of £495 is payable on application – this is fully refundable if we are unable to obtain a mortgage offer.
Remortgages
For processing a remortgage a fee of £295 is payable on application – this is fully refundable if we are unable to obtain a mortgage offer.
Rate Switch / Product Transfer
For processing a product transfer/rate switch where you are remaining with your current lender a fee of £145 is payable on application.
Adverse Credit
For applications where there is a history of adverse credit then a total fee of £495 will be charged, of which £245 is payable at the point a personal recommendation is made, whether you decide to proceed or not. The remaining £250 is payable if/when an application is made and is refundable if we are unable to obtain a mortgage offer.
Equity Release Mortgages
A total fee of £990 will be charged, of which £495 is payable at the point an application is made with a provider. The remaining £495 is payable if/when the application completes.
We can accept payment via bank transfer, credit/debit card via PayPal.
© 2020 Sentry Advice Limited (company number:8257351)
Sentry Advice Limited are authorised and regulated by The Financial Conduct Authority and are entered on the Financial Services Register (www.fca.org.uk/register) under reference number: 624557
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. All enquiries will be passed to a regulated Adviser with appropriate qualifications. The information on this website is for use of residents of the United Kingdom. No representations are made as to whether the information is applicable or available in any other country which may have access to it.
Head Office Registered Address: 89 High Street, Uckfield, East Sussex TN22 1RJ