Mortgage FAQs

A mortgage is a type of loan typically used to finance the purchase of real estate, often a home. The mortgage agreement outlines the terms and conditions under which the lender (the mortgagee) provides funds to the borrower (the mortgagor) for the purpose of buying or refinancing a property.

Mortgage brokers are specialist mortgage providers who will look for a suitable mortgage product on a client’s behalf in order to ensure they get the best possible deal. Fees and success rates vary from one broker to the next, so it is sensible to use the services of a number of brokers to get the most attractive quote.

There are two main types of mortgages;

Fixed Rate Mortgage and Variable Rate Mortgage. A Fixed Rate Mortgage means that your interest amount is fixed for a period of time (usually two to five years) therefore your repayments don’t change.

A variable rate mortgage means the amount of interest you pay can change, and therefore so do your repayments. See our page on mortgage interest rates for more information or view the various types of mortgages we offer.

This will not prevent you from getting a mortgage. Our advisors have great success in helping clients with adverse credit. There are a number of lenders that we work closely with who are more favourable to clients who have previously had trouble sourcing finance. Talk to one of our advisors today for further information.

Yes, our advice is always independent and impartial. Our advisors are not commission-based which means they will recommend the best mortgage options tailored to your needs, without any bias. With no affiliations to specific lenders or panels, our CeMap-qualified advisors are fully FCA regulated and committed to providing you with expert, professional guidance.

Being a ‘whole of market broker’ means that we have access to the whole mortgage market. Our advisors search and compare the entire market to find the best offer for you, doing all the hard work for you. 

Our brokers handle all the legwork in securing the best mortgage deals for you. We may charge an Application Fee and a Financial Arrangement Fee, both payable upon completion. Any applicable fees will be clearly outlined in the documentation provided before you commit.

There is no prescribed criteria to determine what you can borrow. The amount you qualify for will be determined by the purchase price of the property, the deposit you are able to put down, your income and monthly expenses. Refer to our mortgage calculator for a guide, alternatively our brokers are able to give you an indication over the phone or a full agreement in principle.

LTV stands for Loan to Value ratio. It represents the percentage of the property’s value that you borrow. For example, if you borrow £160,000 to buy a property worth £200,000, the LTV is 80%.

Lenders in general are more interested in your total income and financial status than the number of hours you work. After all, it is perfectly possible for a part-time worker in a lucrative position to earn more than an entry-level full-time worker. Provided you have enough proof of income, your part-time employment status should not be an issue.

The amount a mortgage lender is willing to lend can vary significantly between lenders and depends on factors such as the length of your employment. Some lenders may only require a single month’s payslip, while others might ask for proof of income for a year or more. If you have any questions or concerns about verifying your income, feel free to reach out to the team at UK Property Finance we’re here to help.

Under some circumstances you are able to have two residential mortgages. However, lenders will assess your financial situation, including your income, existing debt, and the affordability of both mortgages. A second residential mortgage will be allowed for the purchase of additional homes for personal use, a holiday home, weekend residence etc.

Definitely, but it is important to remember that as you are transferring unsecured debt to debt secured against your property, your home may be at risk if you fail to keep up with your monthly repayments. Consolidating debts with one affordable remortgage could lead to significant savings on your monthly outgoings and total amount to be repaid. It is important to seek professional advice or call UK Property Finance any time before securing any loan against your property.

Some lenders offer a specialist ‘family buy to let mortgage’ that enables landlords to let properties to family members provided the rent adequately covers the monthly mortgage payments and estimated renovation costs.

The loan amount, also known as the amount you can obtain on a mortgage, is determined by a number of variables, including as your income, creditworthiness, expenses, and the requirements of the lender. Lenders calculate the maximum loan amount they are ready to lend based on certain ratios and rules.