Need to get a mortgage
Got questions?
Get answers
Confused about mortgages? Our FAQs page has the answers to your mortgage related queries.
- Rated as excellent
- 4.98/5
Mortgage appointments:
Want to chat with a mortgage expert? It's super easy, just head over to our live booking form to book an appointment that works for you. We'll answer all your questions and help you find the right mortgage. No pressure – just a friendly chat and helpful advice.
Here are some things you can prepare for your mortgage adviser meeting:
Gather your financial documents. This includes your latest payslips, bank statements, and tax returns.
Think about your budget. How much can you afford to pay on your mortgage payments each month? How much of a deposit do you have?
Consider your mortgage needs. What type of mortgage are you looking for? Fixed-rate or variable-rate? How long of a term?
Make a list of questions for your mortgage adviser. This will help you make the most of your time together. See below for some examples.
Here are some questions you can ask your mortgage adviser:
– How much can I borrow?
– What type of mortgage is best for me?
– What are the mortgage interest rates and fees?
– What are the monthly repayments?
– What happens if I can’t afford to make my repayments?
– What are the pros and cons of different mortgage products?
At GHL Direct, we believe in providing personalised mortgage advice tailored to your unique needs. During your meeting with our experienced adviser, you can expect the following:
In-depth consultation: We'll take the time to understand your financial goals and circumstances.
Affordability assessment: Our adviser will carefully evaluate your financial situation to determine the best mortgage options for you.
Expert recommendations: We'll provide tailored mortgage product recommendations based on your individual needs and preferences.
Application assistance: Our adviser will guide you through the mortgage application process, ensuring a smooth and efficient experience.
Comprehensive support: We're here to answer any questions you may have and provide ongoing support throughout the mortgage process.
Your initial meeting with a GHL Direct financial adviser to discuss your needs is always at our adviser’s expense and without any obligation. For transparency, our mortgage advisers may charge based on the complexity of each case.
Some mortgage brokers charge an up-front flat fee between £195 and £499, while others take commission from the lender or bank providing the loan. All of this will be explained to you by your mortgage adviser at the start of the meeting.
How to get a mortgage
Got questions about mortgages? Find answers to your most frequently asked questions about buying a home, home loans, mortgage rates, and more.
The typical deposit needed to buy a home in the UK is between 5% and 10% of the property's purchase price.
However, this can vary depending on several factors, such as:
Your credit score: A higher credit score often means you're more likely to get a mortgage with a smaller deposit.
The lender: Different lenders have different minimum deposit requirements.
Government schemes: There are government schemes like Help to Buy that can help first-time buyers with smaller deposits.
It's important to note that while a smaller deposit might be possible, it can also lead to higher monthly mortgage payments.
When looking for a mortgage, it's essential to compare offers from different lenders. This is where we come in, by working with a mortgage broker like GHL Direct you'll get a wider range of mortgage rates.
Key factors to consider when choosing a mortgage:
Interest rate: The interest rate determines how much you'll pay over the life of the loan.
Repayment terms: Decide how long you want to repay the mortgage. Shorter terms typically result in higher monthly payments but lower overall interest costs.
Fees and charges: Be aware of any upfront fees, arrangement fees, or early repayment charges.
In addition to the purchase price of the home, you will also need to budget for other costs, such as:
– Stamp duty
– Solicitor’s fees
– Surveyor’s fees
– Moving costs
– Home insurance
There are a variety of mortgage types available to you, each with its own advantages and disadvantages. Here is a brief overview of some of the most common types of mortgages:
Fixed-rate mortgages: Fixed-rate mortgages offer a fixed interest rate for a set period of time, typically 2, 3, 5, or 10 years. This can make budgeting easier, as your monthly repayments will remain the same for the duration of the fixed-rate period. However, if interest rates fall during this time, you may be paying more than you need to.
Variable-rate mortgages: Variable-rate mortgages have an interest rate that can fluctuate in line with the Bank of England’s base rate. This means that your monthly repayments could go up or down. Variable-rate mortgages can be a good option if you are comfortable with the risk of your monthly repayments changing.
Tracker mortgages: Tracker mortgages track a specific interest rate, such as the Bank of England’s base rate or a lender’s own standard variable rate (SVR). This means that your interest rate will move up or down in line with the tracker rate. Tracker mortgages can be a good option if you want to benefit from any potential interest rate cuts, but you also need to be aware of the risk of your monthly repayments increasing.
Discount mortgages: Discount mortgages offer a discount on the lender’s SVR for a set period of time, typically 2, 3, or 5 years. This can make your monthly repayments lower than they would be on a standard variable rate mortgage. However, after the discount period ends, your interest rate will revert to the lender’s SVR.
Capped-rate mortgages: Capped-rate mortgages have a maximum interest rate that the lender can charge, even if the Bank of England’s base rate rises. This can give you peace of mind knowing that your monthly repayments will never go above a certain amount. However, capped-rate mortgages typically have higher interest rates than other types of mortgages.
Offset mortgages: Offset mortgages allow you to link your savings account to your mortgage account. This means that your savings will offset the balance of your mortgage, which can reduce your interest payments. Offset mortgages can be a good option if you have a large amount of savings and want to reduce the cost of your mortgage.
In addition to these main types of mortgages, there are also a number of specialist mortgages available, such as mortgages for first-time buyers, self-employed borrowers, and people with bad credit.
When choosing a mortgage, it is important to consider your individual circumstances and needs. You should also compare offers from different lenders to ensure that you are getting the best deal possible. It is also a good idea to speak to a financial adviser to get personalized advice
– Get a mortgage in principle for a mortgage before you start shopping for a home. This will give you an idea of how much you can afford to spend.– Work with a mortgage broker who specializes in working with first-time home buyers.
– Be prepared to negotiate on the price of the property.
– Budget for all of the costs associated with buying a home, including the mortgage deposit, mortgage product fees, any broker fees, completion costs, and solicitors fees.
– Get a home survey before you buy the home. This will help you identify any potential problems with the property.
– Don’t be afraid to ask questions. Your mortgage broker, estate agent or lender should be able to answer any questions you have about the home buying process.
Bad credit mortgages:
Generally its a good idea to try and improve your credit score before applying for a mortgage. This can increase your chances of getting a better deal, but don't give up, we can still help.
A bad credit mortgage is a type of home loan designed for individuals with a less-than-perfect credit history. This typically includes those who have had defaults, missed payments, or bankruptcies.
Yes, it's possible to get a mortgage with bad credit, but it may be more challenging and come with higher interest rates. Lenders will assess your overall financial situation to determine your eligibility.
In addition to your credit score, mortgage lenders may consider factors such as:
- Income
- Employment stability
- Debt-to-income ratio
- Savings
- Reason for credit issues
Yes, consulting with a mortgage adviser like GHL Direct can be helpful, especially if you have a bad credit history. They can help you understand your options and find the right deal for your circumstances.
Non UK residency mortgages:
Some mortgage lenders may have restrictions on the type of property you can purchase with a non-UK resident mortgage. Its best to speak to a mortgage adviser, they know the right lenders for your situation.
Yes, it is possible to get a mortgage in the UK as a non-resident. However, the requirements and availability of such mortgages can vary depending on your circumstances
If you’re an EU citizen you can get a mortgage just like a UK citizen if you have:
– lived in the UK for at least 3 years
– a UK bank account
– a permanent job in the UK
If you were born outside the EU and have permanent residency or indefinite leave to remain Lenders will want evidence that you have:
– lived in the UK for at least 2 years
– a permanent job in the UK
– a UK bank account
– a sizeable deposit (as much as 25%)
If you don’t have permanent residency You might still be able to apply for a mortgage as a non-EU national if you have a:
– Tier 2 work visa
– Family visa
– UK Ancestry visa
– Residence card
Typically, lenders will require non-UK residents to:
– A larger down payment (typically 25-35%)
– A good credit score in your home country
– Evidence of a regular income
– A UK bank account
– A UK address for correspondence
- Provide proof of income and employment
- Have a UK-based guarantor or offer a substantial deposit
Interest rates for non-UK resident mortgages are generally higher than those for UK residents due to the increased risk associated with lending to non-residents.
There are two main types of non-UK resident mortgages:
Buy-to-let mortgages: These are designed for investors who want to purchase a property in the UK as a rental investment.
Residential mortgages: These are for individuals who want to purchase a property in the UK as their primary residence.
Typical documents required for a non-UK resident mortgage application include:
- Proof of identity and address
- Proof of income and employment
- Credit history
- Proof of funds (deposit)
- UK-based guarantor information (if applicable)
Yes, consulting with a mortgage adviser like GHL Direct who works with lenders offering non UK resident mortgages can be very helpful. They can help you understand the requirements and find the right deal for your circumstances.
Insurance advice:
As your mortgage adviser, it's important that we review any insurance policies you currently have in place. This helps ensure you're fully protected in case of unexpected events.
What does home insurance cover? Typically, home insurance covers damage to your building and contents due to fire, flood, theft, and other incidents.
Do I need both buildings and contents insurance? While not always mandatory, it's generally recommended to have both. Buildings insurance covers the structure of your home, while contents insurance covers your belongings.
How can I reduce my home insurance premiums? Consider factors like security systems, fire alarms, and keeping your home well-maintained
Whether or not you need life insurance depends on your individual circumstances. There's no legal requirement to have it, but it can provide financial security for your loved ones if you were to pass away unexpectedly.
What is the difference between whole life and term life insurance? Whole life insurance provides coverage for your entire life, while term life insurance covers a specific period.
How much life insurance do I need? The amount depends on factors like your financial obligations, dependents, and lifestyle.
Can I get life insurance if I have a pre-existing health condition? Some insurers may offer coverage, but premiums might be higher.
Whether or not you need critical illness insurance depends on your individual circumstances. It's a personal decision that should be made after careful consideration.
Here are some factors to consider:
Your financial situation: If you have significant debts, such as a mortgage or loans, critical illness insurance can provide financial security for your family if you were unable to work due to a serious illness.
Your dependents: If you have dependents who rely on your income, critical illness insurance can help ensure their financial well-being.
Your health: If you have a pre-existing health condition, it may be more difficult to obtain critical illness insurance or you may face higher premiums.
Your lifestyle: If you have a high-risk lifestyle, such as a physically demanding job or a history of smoking, you may be considered a higher risk for critical illnesses and may need to pay higher premiums.
Critical illness insurance can provide a lump sum payment if you are diagnosed with a serious illness. This money can be used to cover medical expenses, lost income, or other financial burdens.
Here are some factors to consider when deciding if you would benefit from income protection cover:
Your financial situation: If your income is essential to cover your living expenses and debts, income protection insurance can provide a safety net in case you're unable to work due to illness or injury.
Your job: If your job is physically demanding or involves hazardous conditions, you may be at a higher risk of needing income protection.
Your health: If you have pre-existing health conditions or a family history of illness, income protection insurance can be particularly important.
Your savings and investments: If you have substantial savings or investments, you may be able to rely on these in case you need to take time off work.
It's important to note that income protection insurance typically has a waiting period, meaning you may not receive benefits immediately if you become unable to work.
While not legally required, most mortgage lenders will insist that you have buildings insurance in place before you complete the purchase of a property. This is to protect their investment in the property.
Life insurance is not a strict requirement for a mortgage, but it's highly recommended. It can provide financial security for your loved ones if you were to pass away while still having a mortgage. In many cases, lenders will offer life insurance as part of your mortgage package, but you can also arrange this separately.
It's important to note that while not mandatory, having both types of insurance can provide significant peace of mind and financial protection.
Need more information?
Let us know if you need further assistance about our mortgage or protection advice. We will do our best to help.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.