Specialist mortgage areas and how we can help
As independent mortgage brokers, it is important that our knowledge keeps pace with the requirements of our clients. There are a number of areas that can prove particularly tricky for a mortgage applicant, and we pride ourselves on understanding how best to navigate them.
Self Employed Mortgages
It can be unusually difficult for a self employed applicant to arrange a mortgage as each lender has their own view on what income can be considered for affordability calculations. For example, most lenders require three years self employed trading history and will average out income over three years. Some will work on two years history, some on one year.
Where self-employed income has increased, there are some mortgage lenders that will consider the most recent year’s income only rather than averaging two or three years.
Limited company directors will find arranging a mortgage ‘no walk in the park’ as how (or if) you take your income out of the business, can affect which mortgage lenders will consider you.
Most mortgage lenders will consider PAYE income and Dividends from your business. However, if you retain profit within the business rather than pay higher rate tax, most lenders will not consider that as income for mortgage purposes.
We deal with self employed applicants every day and understand how each lender calculates income for affordability. This means that our independent mortgage brokers are your best source for self employed mortgage advice.
more about self-employed mortgages
Bad Credit mortgages
Where a client has a bad credit history, mainstream lenders will most likely turn their back on an application. However, if a bad credit application for a mortgage is handled correctly there are subprime lending options out there for many circumstances.
Our independent mortgage brokers will fully assess your bad credit history and how it affects your mortgage application before running credit score with any lender. We will then talk to potential subprime lenders and establish that they are likely to accept your application before coming back to you with an overview of terms and requesting permission to credit score.
First Time Buyers Mortgages
A first-time buyer is entering a world with which they are not familiar and will have many queries and concerns. They may also have additional factors complicating the case, including:
- Help to Buy and other affordable lending schemes
- Gifted deposits
- Low deposits
we make it easy for our first time buyers to understand their lending potential and their options.
Explaining each step of the process along the way, our experienced independent mortgage brokers make sure as much stress is eliminated from the process as possible for first time buyers.
Buy to Let mortgages
The buy to let mortgage arena, as much as any in the mortgage market, is undergoing major change.
Recent pseudo-regulation via the mortgage credit directive has seen some buy to let mortgages being tagged as consumer buy to lets and becoming de facto regulated.
All of this makes the buy to let mortgage market more complex than ever for the investor to negotiate. Fortunately, as well as the availability of our experienced online independent buy to let mortgage advice, we have a number of tools to assist both the first time and the experienced buy to let investor.
Interest only mortgages
Interest only mortgages, although still common in the buy to let market, and much more difficult to arrange in the residential mortgage market.
We know which lenders will consider interest only application and on what terms. These terms may be 100% interest only, or a part and part arrangement with one element interest only and one element on a repayment basis.
Please note, that all interest only arrangements will be expected to be backed by a repayment strategy to clear the capital at the end of the mortgage term. Suitable interest only repayment vehicles include:
- Sale of the property
- Sale of another property
- Pension plans
Considering buying a second home or a property for a family to live in? Regulation has made the area of second mortgages particularly complex. We understand the lenders active in this market and how they will view your application.
Second Charge Mortgages
Have a mortgage already on your home or investment property? Considering home improvement? A second purchase? Need extra funding?
The standard answer may be to re-mortgage, but there are circumstances where this is not practical for the property owner.
- Not meeting lender’s criteria
- Current mortgage on an attractive rate
- Reason for lending not acceptable to lender
- Poor credit history
In these circumstances, our independent mortgage brokers can help you identify a ‘second charge’ lender that will offer you funds at competitive rates without disturbing your current lending.
A versatile and useful source of funding, second charge mortgages can be arranged in just two weeks.
Changes in the workplace have meant more and more people are becoming self-employed, and a major growth area is individuals contracting their services to companies.
When seeking a mortgage, a Contractor who may be on a very sizeable day rate, can find it difficult to arrange the lending they require. This is particularly true where:
- profit is left within a limited company
- the trading history is short
- spouse or family are listed as company directors
Fortunately, there are some lenders in the market that have specialist terms for Contractors.
Although this was a market originally focused on IT Contractors, many occupations can now be considered in the same way.
We can assist you to find the best option available for you.
Let to Buy Mortgages
Many of our home moving Professional clients wish to keep their current home as an investment property and let it out. In many cases, as part of the process, they also want to raise additional funds on the current home towards deposit on the new home. This is known as let to buy.
Let to buy is a complex and tricky area as mortgage lenders place a number of restrictions on these scenarios which may trip the unknowing borrower up – for example:
- Some lenders will not lend where the current property is not already let
- Lenders will limit loan to value if the current property is to be let
- Some buy to let lenders will not offer re-mortgage options on the property to be let
For these, and other reasons, it is important that the householder who intends to let their current home, get suitable advice from one of our independent mortgage brokers. We deal with let to buy scenarios every day and understand how to put together your lending to suit your needs.
Understanding loan to value
LTV, or loan to value, is a mathematical calculation used by mortgage lenders to establish which deals they may offer to an applicant. For example, a £75,000 mortgage on a £100,000 purchase calculates at 75% LTV
75,000/100,000 X 100