Some of the most frequently questions we are currently asked are:

I’ve heard about current account and off-set mortgages – are they for me?

Such all-in-one accounts are becoming increasingly popular in the UK.

The current account type will provide you with mortgage, banking, credit card and savings account facilities under the umbrella of one account. An off-set broadly follows the same principles with each account set up as a separate ‘pot’. Essentially though, for anyone who regularly holds a positive balance in their current and savings accounts this type of loan can shave years off their mortgage term.

Mortgage amount £100,000
Current account balance £7,500 .
Net balance £92,500

Regular monthly payments made on the £100,000 loan are overpaying the effective net balance of £92,500.

There are some down sides such as the risk of building up an overdraft in the current account and increasing your over all debts. But certainly a current account loan should form part of your considerations.

Can I only have one mortgage?

No, is the short answer!

You may have a mortgage on your primary residence and then take out further loans perhaps to purchase property to let out, property abroad, or for a child to live in whilst at University.

Subsequent mortgages are granted on your ability to afford the repayments, with any rental income being taken into account to support this. They will also reflect the lenders view on the security of the loan based on a valuation of the property being purchased.

With the increase in the number of people now looking for alternative investment opportunities there is a wide range of lenders to choose from offering such arrangements.

I am self-employed with no accounts, can I get a mortgage?

Most definitely yes!

Whether self employed with no accounts, or accounts showing limited net profits, a Director/Owner paid by dividends, or employed on short term contracts you can access the majority of schemes available on the high street.

More and more mainstream lenders are joining the ranks of specialists offering schemes where an individual is able to self-certify their income (and hence their ability to repay the loan). These mortgages are now increasingly flexible and offer rates that are competitive with those offered on “standard” loans.

It is unnecessary to deal with companies quoting high interest rates and fees to arrange such mortgages – so beware!

I have had credit problems – can I still get a mortgage?

Again the answer is yes!

Whether problems are past or present our experience is that they should not prevent you from arranging a mortgage. You should make the company you are dealing with aware of ALL the details relating to CCJs, default notices, arrears and missed payments. That way you can be recommended a loan that will be satisfactorily completed without undue delays and possible disappointment.

Unfortunately we find people offering ‘advice’ in this area charge excessive fees and rarely involve any form of debt counselling to prevent problems recurring – so beware!

I am a single parent, can I get a mortgage?

Yes.

Whether a single parent, or perhaps a student at University lenders will certainly consider you for a mortgage. They will start by assessing your income and ability to repay a loan (see the question above ‘I am self employed . . .’). A competent adviser would know very early on in the advice process whether you qualify for a loan on this basis and would avoid submitting applications that may end in disappointment.

An alternative could be a ‘Guarantor’ mortgage. This would involve a third party (perhaps a parent) guaranteeing mortgage repayments would be made to a lender in the event of you struggling to meet your on-going commitments.

Should I go for a fixed rate, or discount mortgage?

Both mortgages have their relative merits. A fixed rate will allow you to plan your household budget with the confidence of being certain that mortgage payments are not going to rise (the down side being you may miss out on interest rate reductions!). A discounted mortgage generally offers a lower interest rate that helps with reduced outgoings during an initial period (albeit offering no protection against interest rate increases!).

If you are undecided, consider a ‘drop-lock’ mortgage. This new concept is one that starts off as a discount rate but provides you with the comfort of being able to switch to a fixed rate without incurring any charges.

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