Do I need a deposit?
Yes, you will require a deposit to get a mortgage and the minimum requirement for most lenders is a 5% deposit.
With a larger deposit your loan-to-value will be lower, which means you are less of a risk to a lender. Lenders are more likely to offer you a better mortgage rate, which will mean lower mortgage repayments.
I am thinking of moving what do I do first?
We would always recommend that you come and talk to us about what is involved before you put your property on the market.
This includes going through all of the fees that are associated with a sale, such as estate agent fees, solicitor fees and Stamp Duty, as well as making sure that your new mortgage will remain affordable. IMS are estate agents too so we can help market your property for sale.
How long will an appointment take?
We recommend allowing an hour for your initial appointment.
Will there be a charge for the appointment?
No, our appointments are free of charge.
Do you charge a broker fee?
IMS charge a broker fee based upon on your circumstances, loan amount and complexity of your case. Our usual broker fee is £995 and is only charged when the mortgage is agreed in principle with the lender.
What do I need to bring to an appointment?
If you are employed, we will require your latest three months’ pay slips and latest P60. If you are self-employed, we will require the last two years of accounts. Other documents needed:
- latest three month’s bank statements showing salary credits
- passport or driving licence
- council tax or utility bill dated within the last three months
- credit file from Experian (if you have had any adverse credit history in the past)
- latest mortgage statement
- HMRC confirmation letter for income derived from tax credits or child benefit
- latest pension statement.
Can I apply for a mortgage if I am still in my probationary period at work?
Yes, there are a few lenders that will lend while you are still in your probationary period.
What income can I use to get a mortgage?
- Employed and self-employed income
- Maintenance payments
- Child Benefit
- Child and working tax credits
- Pension income
- Rental income that is declared on a tax return.
Is life insurance compulsory when I take out a mortgage?
It is not compulsory, however it is important to protect yourself and your family should the worst happen. We can advise you on the insurances that would adequately cover you.
Should I take out mortgage payment protection insurance?
Mortgage payment protection insurance will cover you usually for a period of 12 months and can cover you for accident, sickness and unemployment or a combination of these. It is recommended, but not compulsory.
Mortgage payment protection insurance has to be taken out within 30 days of taking out a new mortgage, remortgaging or taking a further advance.
How long does it take to get a mortgage offer?
From the date the mortgage application is submitted, we aim for you to receive your mortgage offer within three weeks. However, it is often sooner than this.
Will I get a better deal if I go direct to my own bank?
As independent whole of market mortgage brokers, we use the majority of high street banks and building societies. Some will offer better deals if you go direct rather than through a broker and some the other way around. We are more than happy to compare deals that you find direct through a bank or building society.
I am buying direct from the vendor (not using an Estate Agent), will this matter?
No, private sales are acceptable.
Can you find a solicitor for me?
Yes. We work closely with a number of highly recommended solicitors that we can put you in touch with.
If I am on my lenders standard variable rate, is it better to get a new deal?
We will review your existing mortgage deal and if we are able to save you money, we can switch your mortgage for you.
My current deal has redemption penalties, does this mean I can't get a new deal?
You will incur the early redemption penalties if you want to switch your deal, but this may work out more cost effective in the long term. If you are moving home and have redemption penalties, then we will always look to port (move) your mortgage first to see if we can save these charges.
Do I need a Decision in Principle (DIP) before I start looking at houses?
During your first appointment we will discuss your situation and if we feel that the mortgage will pass a lender’s credit score then a DIP is not necessary. The most competitive lender can change on a daily basis, so we feel the DIP would be a waste of a credit check.
How many credit checks can I do before affecting my credit history?
We do not recommend more than four credit checks in a six month period and that includes all types of credit. This is why we resist doing the DIP until you are absolutely ready to proceed.
I have had adverse credit will this stop me from getting a mortgage?
There are some lenders who will accept adverse credit applicants.
We would always advise you to obtain your credit report from www.crediexpert.co.uk and bring this to your first appointment so that we can discuss this in more detail.
I am splitting with a partner can I take them off the mortgage?
If the mortgage is affordable and fits with the lenders criteria then you can do a transfer of equity, which will transfer the property into sole names or into the name of another person.
Will I receive regular updates on my mortgage application?
We update you every Tuesday and Friday on the progress of your mortgage application, via email.
Will I receive a copy of the mortgage valuation?
If it is a standard valuation, no, there is no report issued, it is for the lenders purposes only.
If you have opted for a homebuyer’s survey, you will receive a copy of this a few weeks after completion of the valuation. We do not receive a copy of this and neither does the lender.
Who receives copies of the mortgage offer?
Yourselves, us as the mortgage broker and your appointed solicitor.
When will my first mortgage payment be and how much will it be?
The lender will write to you, usually within 14 days of completion to let you know when the first payment will come out and how much it will be. Please note your first monthly payment is usually higher.
What happens to my current lender payments when i complete on my new mortgage?
When your remortgage or purchase completes, you will need to cancel the direct debit you have set up with your current lender.
What is the assumed start date on a mortgage offer?
The assumed date stated on your mortgage offer is not a definite date, this may change dependent on how long it takes to reach an exchange/completion date. The mortgage lender will write to you after completion and confirm when your first payment will be expected and how much it will be.