Purpose of Mortgage

A first time buyer is a buyer who has never purchased a property before and generally has previously lived with relatives or friends or occupied rented property

House purchase is when an applicant, who has been a previous purchaser/occupier, is intending to purchase a different property for owner-occupation

A remortgage occurs when an applicant wishes to switch a mortgage loan from one lender to another without moving properties. The existing loan is repaid by a loan from the new lender. Depending on the amount of equity, this could also be a means of raising additional funds.

A buy to let mortgage is for when a property is bought as an investment and rented out to a tenant who pays a rental income.

A right to buy mortgage is only available to council tenants or certain types of tenants where the landlord has received a subsidy from the Local Authority. The tenant must also fit certain eligibility criteria related to the type of property and the length of time they have lived there. The amount of discount depends on how long the tenant has lived in the property and is also calculated taking into account any improvements carried out at the tenants own expense.

A self build mortgage is taken out on a property that is either still to be built or still under construction. Typically, the lender will only pay out the loan in stages, corresponding to the completion of various stages in the construction. There are generally six stages to a build where your mortgage company will release funds to allow the project to continue. They are:

Stage 1 - purchase of the land or property;

Stage 2 - preliminary costs and foundations or preliminary costs and structural overhaul;

Stage 3 - main structure erected;

Stage 4 - making the property wind and watertight;

Stage 5 - first fix and plastering;

Stage 6 - second fix through to completion

This is a specialised mortgage product designed for people over the age of 55 , which allows them to release the some of the equity they have built up in the home; this could be through owning the property outright, or from the value of the home increasing over time.

The householder retains ownership of the house whilst being able to use the equity to boost their income. There are several products on the market, some of which you only pay the interest back during your lifetime, and others where you pay nothing back during your lifetime and the repayment is taken out of the estate on death. For this reason, it should be noted that the applicant should be aware that they will be asked if they have discussed with their family members the reasons for applying for equity release.

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Value of Property

First time purchaser: This is the current market valuation of the property or the agreed purchase price for that property between you and the vendor;

House purchase: This is the current market valuation of the property or the agreed purchase price for that property between you and the vendor;

Buy to let: This is the current market valuation of the property or the agreed purchase price for that property between you and the vendor;

Equity release over 55’s: This is the current market valuation of the property or the agreed purchase price for that property between you and the vendor;

Remortgage: This the current market value of the property;

Right to buy: This is the approximate market value of the property. It should be noted that the Local Authority valuation may differ from the market valuation and should be taken into account when applying for the mortgage;

Self build: This is the market valuation anticipated when the property is fully constructed and ready for occupation. Generally, there would also be additional interim valuations carried out at various stages of construction reached etc

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Amount of mortgage required

With all mortgages, the amount you can borrow is dependent on your current income and expenditure. Most lenders will be looking at multiples of between 3.5 and 4 times income, less your monthly outgoings (typically living expenses, loan and credit card repayments etc.)

Exception - Buy to let: The amount that you can borrow is dependent on your rental income. Most lenders will be looking to ensure that your rental income is sufficient to cover your mortgage repayments for the term of the mortgage

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Any CCJ's

If you have experienced financial difficulty in the past or are unable to produce full proof of your income, a previous application may have been rejected by a main stream lender. You may be considered as an adverse customer if you have had:

• County Court Judgments (CCJ's);
• Defaults;
• Arrears;
• Bankruptcy.

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Current Lender

Please provide the current lender you have your mortgage with

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