Mortgage FAQs – Expert Advice from Mortgage Bridge
Find answers to your mortgage questions with Mortgage Bridge’s comprehensive FAQ page. Whether you’re a first-time buyer, self-employed, or have bad credit, we’re here to help you secure the right mortgage for your needs.
General Mortgage Questions
What is a mortgage and how does it work in the UK?
A mortgage is a loan used to purchase a property, secured against the value of the home. If repayments are not made, the lender can repossess the property.
How much can I borrow for a mortgage in the UK?
The amount you can borrow depends on your income, outgoings, credit history, and the lender’s affordability criteria. Use our online mortgage calculator for an estimate.
How long does it take to get a mortgage approved in the UK?
The process typically takes 4 to 8 weeks from application to offer. Having all documents ready can speed things up.
What is an Agreement in Principle (AIP)?
An AIP is a conditional offer from a lender stating how much they could lend you based on a soft credit check and basic financial information. It helps show sellers you’re a serious buyer.
First-Time Buyer FAQs
How much deposit do I need for a first-time buyer mortgage?
Most lenders require at least a 5% deposit. A larger deposit often means better interest rates.
What government schemes are available for first-time buyers in the UK?
Schemes like Shared Ownership and First Homes can make buying more affordable. Contact us to explore your options.
What are the extra costs when buying a home?
Budget for solicitor fees, valuation fees, stamp duty (if applicable), and potential survey costs, alongside your deposit.
Bad Credit Mortgages
Can I get a mortgage with bad credit in the UK?
Yes, it’s possible. Mortgage Bridge specialises in helping clients with poor credit find lenders willing to consider their circumstances.
What are the interest rates for bad credit mortgages in the UK?
Interest rates can be higher due to increased risk, but improving your credit score can help secure better deals.
How can I improve my chances of mortgage approval with bad credit?
Paying bills on time, reducing debts, and registering on the electoral roll can all improve your creditworthiness.
Mortgage Application Process
What documents do I need for a mortgage application in the UK?
- Proof of ID (passport or driving licence)
- Proof of address (utility bill or bank statement)
- Proof of income (payslips, SA302s for self-employed)
- Bank statements from the last 3 months
What happens after I submit my mortgage application?
The lender will assess your affordability, conduct a credit check, and issue a mortgage offer if approved.
What is a mortgage valuation?
A valuation checks the property’s worth for the loan amount. It’s not as detailed as a survey, which is optional but recommended.
Remortgaging FAQs
What is remortgaging and how does it work?
Remortgaging means switching your existing mortgage to a new deal, either with your current lender or another one. People remortgage for better rates, to release equity, or consolidate debt.
When should I start thinking about remortgaging?
Start around 3 to 6 months before your current deal ends to avoid reverting to your lender’s standard variable rate.
Can I remortgage with bad credit?
Yes, but your options may be limited. We can help find lenders who consider applicants with adverse credit.
Self-Employed & Complex Income Mortgages
How to get a self-employed mortgage in the UK?
You’ll need to provide 2-3 years of accounts, SA302s, or tax calculations with tax year overviews. Lenders often average your income over these years.
What if my income varies?
Lenders usually average your income over the last few years, while some consider your most recent year if it’s higher.
Mortgage Types Explained
What’s the difference between fixed and variable rate mortgages?
- Fixed-rate: Your interest rate stays the same for a set period, ensuring consistent monthly payments.
- Variable-rate: The interest rate can change, meaning payments could increase or decrease.
What is an interest-only mortgage?
With an interest-only mortgage, you pay just the interest each month. The full loan amount is due at the end of the term.
Buy-to-Let Mortgages
How to get a buy-to-let mortgage in the UK?
Buy-to-let mortgages are designed for rental properties. Lenders usually require a 25% deposit and rental income to cover 125%-145% of the mortgage payments.
How much rental income do I need for a buy-to-let mortgage?
Most lenders want your rental income to cover 125% to 145% of the mortgage payment, depending on the interest rate.
Mortgage Costs & Fees
What are the typical fees involved in getting a mortgage?
- Arrangement fee (charged by the lender)
- Valuation fee
- Legal fees for conveyancing
- Mortgage broker fee (if applicable)
What is Stamp Duty in the UK?
Stamp Duty Land Tax (SDLT) is paid on properties above a certain price. First-time buyers often get reduced rates or exemptions.
Mortgage Protection & Insurance
Do I need insurance for my mortgage?
While not legally required, insurance is recommended. Common types include:
- Life insurance: Pays off the mortgage if you pass away.
- Critical illness cover: Pays a lump sum if you’re diagnosed with a serious condition.
- Income protection: Replaces part of your income if you can’t work.
Credit Checks & Affordability
Will applying for a mortgage affect my credit score?
A soft credit check for an Agreement in Principle won’t affect your score. A full application involves a hard check, which may have a minor impact.
How do lenders assess affordability for mortgages?
Lenders look at your income, regular expenses, debts, and credit history to determine if you can afford the monthly repayments.
Next Steps & Support
How can Mortgage Bridge help with my mortgage?
We guide you through the entire process, from finding the right deal to submitting your application and securing an offer.
What if I’ve been declined by a bank?
Don’t worry—many specialist lenders are more flexible than high-street banks. Speak to us, and we’ll explore your options.
Still have questions? Contact our team at Mortgage Bridge for personalised advice. We’re here to make the mortgage process as straightforward as possible.