Answers to the most frequently asked mortgage questions
Are the lenders providing 10% deposit mortgages?
It is possible to purchase a property with a 10% deposit but it is harder than normal. Nationwide for Intermediaries, Bank of Ireland and HSBC are the biggest lenders offering 10% deposit rates.
Most banks and building societies require borrowers to have a deposit of at least 15%. None of the lenders are offering standard 5% deposit mortgage rates.
Is it possible to get a mortgage if you are self-employed?
Mortgage lenders are assessing applications from the self-employed more closely and they want to know if businesses are experiencing financial difficulties. Applicants will probably have to provide their latest accounts and recent personal and business bank statements. They may well have to answer questions about their trading plans over the coming months and whether they have taken help from the government.
Are the lenders still issuing £500,000+ mortgages?
Some of the banks and building societies have increased their maximum loan sizes on their cheapest rates in recent weeks as they look to lend more money. Trinity's brokers have access to a range of incredibly cheap large loan rates priced just over 1%.
How much deposit will I need for a buy-to-let mortgage?
Most lenders require landlords to have a deposit of at least 20% to secure a buy-to-let mortgage. Buy-to-let rates through the larger banks are incredibly cheap at the moment.
Have income multiples changed?
Lenders are still providing up to five times salary mortgages for first-time buyers and home movers, they are also offering 5.5 times salary for some professionals and those earning over £75,000. A selection of lenders still offers six times salary for professionals and those earning over £100,000.
Is there more demand since the chancellor announced the stamp duty holiday?
There was already pent-up demand for property since the lockdown finishes but following the chancellor's stamp duty announcement our brokers have been speaking to even more potential buyers. We are getting lots of calls from first-time buyers, buy-to-let investors and people trying to move up the property ladder. They want to take advantage of the tax break.
Which lender has the cheapest rate?
Virgin Money for Intermediaries most competitively priced rate has been lowered to 1.16% and it is fixed until 01 November 2022. After the lock-in period, the mortgage reverts to the lenders 4.34% variable rate and the overall cost for comparison is 3.3% APRC. Applicants will need a 35% deposit to qualify for the arrangement fee is £1,495. The bank has a five-year fix priced just over 1.5%.
Are there fewer mortgages to choose from?
Mortgage technology experts Mortgage Brain has seen product numbers continue their steady improvement, increasing by 1.1% last week to a new post-lockdown high of 9,266. This is up by almost 25% on the lowest point seen since Covid-19 struck back in the week ending 12th April.
How long is it taking to produce a mortgage offer?
It normally takes around two weeks for a lender to provide a mortgage offer although it can take longer if the provider does additional checks. If a lender uses a system-generated property valuation then the process is open a lot quicker.
Call Trinity Financial on 020 7016 0790 for help to secure a mortgage or send an enquiry
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