Mortgage FAQs
A Repayment mortgage is the only way to guarantee repayment of the Buy to Let loan at the end of the mortgage term and is the most cost-effective method over the full term of the mortgage.
Beyond initial buy to let purchase and legal costs, such as stamp duty, legal and conveyancing fees, valuation costs and possible refurbishment, you may find you are liable for management fees, service charges, insurance, taxes and fees for periods of zero-occupancy.
Commercial properties generally offer longer term contracts than residential buy to let properties which can bring greater returns, however you must weigh up the risks of periods of no-occupancy.
This depends on your circumstances. Buying to Let as a Limited Company may bring tax relief and greater flexibility for tax planning, however you may be limited in your choice of mortgage products and rates.
Yes, you can. You just have to prove your earnings to the lender in a different way. Read more about mortgages for the self employed in the news section.
Your credit score has an impact on how much you could borrow. My advice is to improve that score where possible by clearing credit cards, shopping accounts and cancelling any unnecessary memberships. You can check you score with Checkmyfile*.
*By clicking the link, you will need to register your details with Checkmyfile and enter into a free 30-day trial period. This will allow enough time for you to register your information and download your report. You are free to cancel this trial period at any time during the 30-day free trial period without penalty. Should you fail or choose not to do so, Checkmyfile will charge you a subscription fee of £14.99 per month thereafter. To get the best from this service, please ensure you register all of your primary and/or associated addresses within the last 6 years. MK Mortgages will receive a payment of £12 per free trial entered into via the link to Checkmyfile’s website. This is payable whether you cancel the trial period or not.
It should be noted that lenders will not be assessing the report produced from Checkmyfile and will undertake their own research and assessment. Neither MK Mortgages nor Quilter Financial Planning are responsible for the accuracy of the information contained within their site. Details of how to unsubscribe or cancel this service, is available directly from the Checkmyfile website under their T&C’s which states “If you wish to cancel your subscription, please log in and send us a Secure Message at any time, email us, or call us on our Freephone telephone number 0800 086 9360 during normal office hours. In all cases we will provide you with a cancellation reference code in confirmation.”
This is mortgage adviser speak for how much the lender is willing to lend you in relation to the value of the property you wish to buy. A 5% deposit results in 95% LTV. Lender LTVs vary so it’s best to ask for advice before setting your sights on your first home.
You should really aim for a minimum deposit of 5% of the value of the property you would like to buy. However, I would not advise searching for your home before finding out how much you can borrow, as that can lead to disappointment.
Yes, you can. Increasing your mortgage loan is called additional borrowing, but it may come in the form of a second loan, leaving you with two interest rates and two renewal dates. Ask for advice when moving home.
Yes, you can. However, if you choose to take a new mortgage for your new home, you may incur early repayment charges or exit fees. Make sure this is taken into account when researching your options.
Porting a mortgage means to move your current deal to a new property. Most lenders offer this as an option, but there may be some reasons you can't. If you can port, and do not need additional borrowing, it is unlikely to cost you to move. Ask for fee-free, independent advice to find out your options and whether costs apply.
Not at all. All mortgage advisers are paid a commission from the lender when we arrange a mortgage. I accept this to cover my costs and choose not to add a 'mark-up' cost to you. Paying for mortgage advice in no way opens the door to more lenders or products, and certainly cannot reduce your interest rates or monthly payments.
If you stay with your current mortgage lender, they already hold the legal charge to your property, so timescales are significantly reduced to days. However if you choose to move to a new lender, it could take a number of weeks. There are things you can do to keep the time it takes to remortgage to a minimum.
Most lenders offer a selection of options that include free basic valuations, free legal transfer services or cashback products where the cashback can be used to cover the cost of using your own chosen conveyancer. They will also offer a selection of interest rates with differing arrangement fees. All of which are discussed with you in order to help you decide on your remortgage. Remember, all of my mortgage advice is still free of charge to you.
I like to start remortgage discussions six to seven months before the end of your current mortgage deal, or even a year. The reason is so I can really understand your needs and circumstances, and have ample time to arrange any legal work. The actual paperwork can be completed in a matter of weeks, but many lenders offer a deal that lasts for 6 months.
When your current mortgage comes to an end, you won't automatically keep the same rate or deal, so even if you have been content with your mortgage provider, it is still advisable to ask an independent, whole of market mortgage adviser for help ensuring you will find the right deal for your remortgage.
Contact MK Mortgages
Please use the contact form to get in touch. The earlier you start the process the better.
Marc Kavanagh is a non-fee charging, whole of market mortgage adviser, providing advice purely for your benefit.
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