This is a lending promise that a Bank or Building society will support a mortgage application based on a snap shot of your financial position. It’s very often requested by estate agents in order to determine how viable a potential buyer is.

This is the term used to determine what banks determine you can borrow and repay . This takes into consideration Income , debts, age and employment status, number of children , benefits in fact all areas of your life which make up your financial makeup .

Many customers believe that all banks offer a similar amount . However, every bank interprets income , commission , bonuses, cis , self employment income , retained profits differently . This is where a good mortgage adviser can make a massive difference understanding your financial lifestyle is essential to understanding your borrowing capabilities.

When you buy property for an investment this is usually funded by a mortgage referred to as a buy to let mortgage. Unlike a tradition mortgage buy to let mortgages

  • Interest rates are usually higher on buy to let mortgages compared to residential
  • Whereas for residential mortgages your deposit could be as little as 5% of the property value you will have to pay at least 25% for a buy to let mortgage.
  • A traditional mortgages you can borrow an amount which is linked to your income, with a buy to let mortgage, the lender will instead look at how much rent you could make from the property on which the mortgage is secured.
  • This is the amount you are putting down to secure your new home. There are some excellent schemes to help first time buyers to save for their new home giving some savers up to a 25% uplift on what they manage to save towards their new home.

    This is a reflection simply of how your earn your income and from the lenders perspective how you will be able to repay the mortgage debt. Unfortunately lenders have different interpretations on employment to others.

    For example an employee of a limited company who has 24% share holding in the business will be treated as an employee by Lloyds Banking Group and self employed by Natwest . However, by Law they will be defined as employed irrespective of the shareholding . This is why this is the most difficult of areas for consumers to understand .

    Why should this matter ?

    Simply self employed people need to demonstrate for lending a consistency of income over years where as a n employed person needs only months. It’s a mine field and we will help you through this.

    Buying your first home can be a very exciting albeit daunting experience which is why it is important to understand the choices available to you so you can make an informed decision right from the start. There are many different mortgage products to choose from so it is important to get the solution that best meets your needs.

    To help you to make the right decision we have put together both video presentation and graphical presentations in your journey section of this site

    How much can I borrow?

    It is important to be realistic when working out how much you can spend on your new home. A budget planner will help to ensure your mortgage is affordable. What determines your affordability is your income, age, and debts.

    How much deposit will I need to put down?

    When choosing a mortgage, you can see which deals you might qualify for based on the size of the deposit. Different schemes and buying options have different deposits, you may be suprised how little you need.

    I have heard about scheme such has help 2 buy and family assistance mortgages – do I qualify?

    It is absolutely essential you understand what you qualify for and what you don’t. As only with this information can you make a truly informed decision on what to buy . Our advisers will make sure you know what you can get access to and where to find these properties and schemes.

    Navigate to the 'My journey' page to see how this is all broken down in to simple easy steps.

    This is the name for a series of different schemes and products which are there to assist us in buying a home. The assistance comes in the form of savings accounts, equity loans and shared ownership loans.

    This is a term that details the amount you are borrowing against the property value. Lenders use it to access risk . Simply the lower the loan to value the more equity that will be in a property and as such the lower the risk for the lender. The lower the risk the better the rates are and of course the overall deals available.

    A mortgage illustration is a document which details All of the financial information about the mortgage on offer. This is put into a single format to ensure that customer can make simple comparison between deal and make an informed decision.

    This is a commitment from the lender that they will advance the monies ‘subject to no changes in your circumstances’. The offer details all the terms and conditions of the loan which should be a reflection of the mortgage illustration you had previously been provided.

    We have detailed every step in the your journey of our website – this shows but text , pictorial and video presentations which allows you to absorb the information you will need to make the right choices when buying your home.