Ultimate Guide to Getting a Mortgage in the UK

The journey to getting the right mortgage may seem complex and confusing, but as local mortgage brokers in Brighton, we are here to make the process as simple as possible. 

This mortgage FAQ explains what you need to have in place to get the right mortgage for your lifestyle.

1. Purchase: If you are a first-time buyer, then the size of your deposit is critical to how much you can borrow. A minimum of 5% of the full cost of the property is needed and as the deposit amount increases by 5% then the interest rate charged by the mortgage company will drop.
   

2. Remortgage: If you need to remortgage your property, then check with your current lender how much money is left to pay and from that, we can estimate how much equity you may be able to release based on your income.
   

3. Knowing how much your home is worth forms a crucial part of any lender's calculations as to how much money they are willing to lend to you, we call this the LTV (Loan to Value) percentage. Example: If your house is worth £200,000 and you want to borrow £150,000, then your LTV is 75%. The maximum a lender will offer is 95% LTV.Note: the higher the LTV, the higher the interest rate will be. So, a 95% LTV may cost around 5.5%, compared with a 60% LT, which would cost more like 4.7% a year in interest To find out how much your home is worth, head over to www.zoopla.co.uk. Note: You are now departing from the regulatory site of Sussex Mortgages. Neither Sussex Mortgages nor PRIMIS Mortgage Network is responsible for the accuracy of the information contained within the linked site.​
   

4. How much you earn has a big impact. If you are employed, then tell us your annual gross salary. Include any bonuses or overtime. If you are self-employed, then this is the NET Income that you paid tax on. This is called a SA302, or Tax Calculation/Computation. Include any additional income like child benefit, maintenance, universal credit and tax credits. As a general rule, most lenders will offer around 4.5 times your income. If your income is greater than £80,000, some lenders do offer 5 times income.
   

5. We all have moments in our lives when we did not manage to pay a utility bill or missed a payment on a mortgage. If that happened to you, then let us know, as you can still borrow with a low credit score as long as the problem was more than a year ago. Include any credit card debt, personal loan or car payment commitments you may have. To see what each of the thre major credit agencies (Experian, Equifax and Transunion), say about you, click on over to CheckMyFile for free credit report. Note: The more information we have about your situation, the better we can serve you in finding the best mortgage for your lifestyle.​
   

6. Calculating Affordability: Use online mortgage calculators to estimate how much you can afford to borrow based on your income and expenses. This can help you set a realistic budget and avoid applying for a mortgage beyond your means.
   

7. Getting Pre-Approved: Consider getting pre-approved for a mortgage before house hunting. Pre-approval or more commonly know as a Decision in Principle, gives you a clear idea of how much you can borrow, making the home-buying process more efficient and demonstrating to sellers that you are a serious buyer.
   

8. Understanding the Application Process: Once you've selected a lender and found a suitable mortgage product, the application process begins. Be prepared to provide detailed information about your finances, employment status, and the property you intend to purchase.
   

9. Seeking Professional Advice: If you're unsure about any aspect of the mortgage application process, seek advice from a mortgage broker or financial advisor. Their expertise can help you make informed decisions and secure the best mortgage deal. In conclusion, securing a mortgage in the UK doesn't have to be overwhelming. By understanding the process, assessing your finances, and seeking professional guidance, you can navigate the journey towards homeownership with confidence and ease. Whether you're a first-time buyer or looking to remortgage, being well-informed is the key to a successful mortgage application.