Expert mortgage advice in Romsey working to save you time and money

How much you can borrow depends on a number of factors including:

• Your income
• Your level of debt such as loans, hire purchase & credit cards
• Your credit history
• Your lifestyle

Lenders will look at all of these factors & more to determine how much they are prepared to lend you.  For an accurate view of your borrowing potential book an appointment with us now.

In most cases you will require at least a 5% deposit for a mortgage.  However the actual deposit you require will depend on your personal circumstances.

For example if you have had credit issues in the past lenders may ask for a higher deposit than for those without credit issues.

Having a lower deposit will also likely lead to the interest rate you are charged is higher as your Loan to Value (LTV) will be high.  The bigger your deposit the less its likley to cost you to borrow on a like for like basis.

You can read our guide here for more information.

The process of getting a mortgage can be complicated, especially if you have complex circumstances.  With access to deals from across the whole of the market, we are here to help make the whole process as simple as possible:

1. Book an appointment with us to get started
2. Register to our client hub & complete the questionnaire in your booking confirmation email
3. Meet with a mortgage expert who will take the time to get to know your circumstances and find the right deal for you
4. Upload your documents when requested
5. Leave the rest to us!

You can download our guide to buying your home here.

You have a number of options when it comes to the type of mortgage you can chose from.  From fixed rate to tracker rates, from offset to interest only.

Every client is different with a unique set of circumstanes.  As your expert mortgage adviser our role is to get to know you and understand your needs & then make a reccomendation based on these.

We'll work with you to identify the right type of mortgage & get the best deal for you.

You can learn more about different mortgage types here but we'll explain everything to you when we meet.

As well as your deposit, there are a number of other costs that you will need to consider when buying property.  These costs can vary depending on your circumstances & value of property you are buying.

• Stamp Duty - see how much you may need to pay here.  First time buyers may qualify for reduced rates
• Legal Fees - you will need to pay for a solictor or conveyancer.  We can reccomend & arrange one for you as aprt of our service
• Valuation costs - most lenders will require the property you are requiring to be valued.
• Surveying Costs - You may choose to have the property you are buying surveyed to look for any potential issues before you complet your purchase, especially in older homes.  We can arrange this for you if you require as part of our service
• Mortgage Fees - depending on the type of mortgage there may be fees associated with arrnaging the mortgage.  In most cases these can be added to the mortgage itself.
• Home Insurance - most lenders will require you to insure the property you are buying as part of their terms & conditions - we can arrnage this for you as part of our service.
• Protecting yourself & your family - making sure you have the right insurances in place should the unexpected happen.  Our service includes a complete review of your circustances & we'll provide you with competitive options.
• Removal costs & Budget for work you may want done or new fixture & fittings

Our guide, which you can download here, provides more information.

With the changes to stamp duty rates in 2020 & into 2021 this has become a complex area.  In most cases you will need to pay stamp duty for your property purchase.

However there are exemptions in place for First Time Buyers, property transactions below a certain amount and for property transactions that complete before a certain date.

You can use our Stamp Duty Calculator to get an estimate as to how much you will need to budget for.

Your solicitor or conveyancer will confirm the exact amount you will have to pay.

There are a number of steps to the home buying process once you decide to make an offer on a property:

1. Speak to us for your agreement in principle
2. Agree the purchase price
3. We'll put your mortgage application in, arrange your conveyancer & building survey if required.
4. The lender will start your mortgage assessment & arrange a valuation
5. You will get your mortgage offer
6. Exchange of contracts - at this point we'll arrange your home incurance
7. Completion & move in!

You can download our ghuide to buying your home here.

Typcically it can take between 8 to 12 weeks to complete your property transaction.  However a number of factors will impact this such as the number of people in your chain, complexity of your transaction and the type of property your buying.

During the current pandemic we have seen some transactions take around 6 months to complete.

We'll work with your estate agent, conveyancer & lender to ensure you are kept informed every step of the way and do eveything we can to make your transaction as smooth as possible.

In most cases, you should be able to move your current mortgage over to your new property. This is known as Porting. However, if you need to borrow more to cover any shortfalls in borrowing your lender will likely require you to do this through a separate mortgage product covering the difference.

We would recommend this option especially if you have Early Repayment Charges that are too high to be offset through savings in an improved deal.

However, sometimes lenders may not allow you to port your mortgage for several reasons, for example, due to the construction style of your new home.

You may also need to undergo affordability checks for your new mortgage and if your circumstances have changed you may not meet your existing lender's criteria – especially if they have amended it since you took out your mortgage.

Known as “let to buy”, if you can meet the lender criteria it may be possible to keep hold of your current property to rent out whilst purchasing your new home.

In this scenario you may be able to remortgage your existing home to a “let to buy” mortgage, this may allow you to raise equity towards a deposit for your new home as well as a residential mortgage.

You will need to meet strict affordability checks in this scenario as potentially you will need to pay for two mortgages if you're unable to let out your original house.

There are other complexities that you need to consider when considering this option including Stamp Duty Land Tax (SDLT) surcharge where you have to pay an additional 3% of stamp duty above the normal rate you would pay. 

If you need a larger loan to buy a more expensive property, the lender will want to see that you have enough income to qualify for the new loan. If market conditions have changed since you took out your original loan, the new requirements may be tougher.

In other words, if you want to refinance your loan, the lender will not let you without ascertaining that you can afford the new monthly payments both in the short term and longer-term.

For an accurate view of your borrowing potential book an appointment with us now.

While staying with your current lender is an option, the main benefit of switching is that you may be able to get a lower rate with another lender. In fact, rates have dropped drastically over the last few years and your current lender might not have the best rates. There's no harm in checking who has the lowest rate right now.

We have access to deals from across the whole of the market and we can make the process so much easier for you! Get started today by contacting us at The Mortgage Stop.

Unless your existing mortgage deal is coming to an end you may have to pay an early repayment charge (ERC).

However, you may still find that over time, with a lower interest rate, a new deal may save you money in the long run, even with paying early repayment charge.

We'll provide you with all the numbers so that you can make an informed decision.

We often find that when remortgaging some of our clients want to borrow more than their existing mortgage.  For example you may want to make some home improvements such as a new kitchen.

It may be possible to borrow more on your property if you remortgage dependant on your income, the value of your home and your LTV (loan to value).

We'll be able to speak to about the options available to you to help you get the deal you want.

A buy to let mortgage is used to buy a property and then rent it out for rental income. Lenders use different risk ratings so your interest rate and loan term will vary with the rating given by the lender.

For property investors, it's common for the mortgage to be taken out in your name. But when you invest as a limited company, the mortgage is taken out in the company's name. So, when you invest in properties through a limited company, the company owns the properties.

You can apply for a mortgage before your limited company starts trading, but it must be registered before the mortgage begins. One way to do this is by setting up a special-purpose vehicle (SPV) limited company which is technically a company set up in your name or that of the address of the property you’re purchasing.

You pay your deposit into the company, this is then used, along with the buy to let mortgage to purchase the property.

You can read more here in our guide or we’re happy to answer any questions you may have just give us a call now.

Known as “let to buy”, if you can meet the lender criteria it may be possible to keep hold of your current property to rent out whilst purchasing your new home.

In this scenario you may be able to remortgage your existing home to a “let to buy” mortgage, this may allow you to raise equity towards a deposit for your new home as well as a residential mortgage.

You will need to meet strict affordability checks in this scenario as potentially you will need to pay for two mortgages if you're unable to let out your original house.

There are other complexities that you need to consider when considering this option including Stamp Duty Land Tax (SDLT) surcharge where you have to pay an additional 3% of stamp duty above the normal rate you would pay. 

It is possible to transfer a property in your name into a limited company. However, as this will effectively be a transfer of ownership there will still likely be a stamp duty liability.

If you're considering this you should seek advice from a qualified tax adviser.

For property investors, it's common for the mortgage to be taken out in your name. But when you invest as a limited company, the mortgage is taken out in the company's name. So, when you invest in properties through a limited company, the company owns the properties.

You can apply for a mortgage before your limited company starts trading, but it must be registered before the mortgage begins. One way to do this is by setting up a special-purpose vehicle (SPV) limited company which is technically a company set up in your name or that of the address of the property you’re purchasing.

You pay your deposit into the company, this is then used, along with the buy to let mortgage to purchase the property.

You can read more here in our guide or we’re happy to answer any questions you may have just give us a call now.