Mortgage product changes - We are now accepting mortgage applications for residential purchase and remortgages to up to 90% loan to value (LTV) in our operating area and up to 85% elsewhere.
The introduction of tighter lending rules a few years ago has made it more difficult for self-employed people to get a mortgage. You may have already discovered that some lenders now have tough criteria that you need to meet before they'll consider your mortgage application.
However, we want to help business people secure the mortgages they need. We know that every business is unique, which is why we don't have a one-size-fits-all approach to mortgage lending.
Our friendly and expert team of mortgage advisors dedicate their time to reviewing mortgage applications on an individual basis.
They'll look at your specific circumstances in the same way they would with any borrower, firstly looking to make sure you can afford it, then talking through the full range of mortgage products we offer, and these are available irrespective of whether you run your own business or you're a contractor.
What do we need?
In order to see if we can help, we'll need copies of:
There are a number of different types of mortgage. The main types are:
With a fixed rate mortgage, your interest is fixed for an agreed period. During this period your monthly repayments stay the same so you know exactly how much you’re going to pay each month for a set amount of time. Even if interest rates go up, you will continue to pay the same amount each month, but if they drop your payments won’t fall. Most lenders charge an initial fee for arranging a fixed rate mortgage and if you repay all or a significant part of your mortgage before the end of the fixed period, an early repayment charge is likely to apply.
Your interest is a set percentage above or below a particular rate for an agreed period of time. If you have a variable rate mortgage your payments will go up or down whenever the rate it is tracking goes up or down. These mortgages usually track either the Bank of England base rate or the lender’s own standard variable rate. Most variable rate mortgages have arrangement fees and early repayment charges.
When you start looking at mortgages the choice can seem overwhelming. How can you possibly know whether you’ve got the right mortgage?
Simply put, the right mortgage is the one that is best for your own personal circumstances. The reason why there are so many mortgages available is that everyone’s needs are different. The easiest way to find out which mortgage is best for you is to talk to someone that you trust will give you good advice.
This type of mortgage involves repayment of the loan gradually over an agreed period. Each monthly payment you make consists of two parts, interest on the loan
and repayment of part of the capital of the loan. Most of your monthly payment in the first few years simply covers the interest with only a small amount going
towards repayment of the capital. The repayment part of your monthly payment will, however, increase as the mortgage term and the amount of the loan reduces.
Provided you keep up your monthly payments the loan will be repaid at the end of the agreed mortgage period. With this type of mortgage it is recommended that
you take out life assurance sufficient to repay the loan if you should die before the end of the mortgage term.
The amount of interest you pay will normally vary with changes in our standard variable rate.
With an interest-only mortgage you make a monthly payment to us to cover the interest on the loan. Providing you keep up your monthly payments, the loan amount will remain the same and the interest is payable on the total amount of the loan for the whole of the mortgage period.
To repay an interest-only mortgage you will usually need to ensure you have a suitable strategy of paying off the mortgage at the end of the agreed term, such as an
We will tell you what will happen if you do not make suitable arrangements to repay the loan and that it is your responsibility to ensure that an adequate repayment strategy is in place.
One of the first questions you should ask yourself when you start looking for a mortgage is how you’re going to pay it off. Most borrowers opt for a repayment mortgage (referred to as Capital and Interest) but you can also choose an ‘Interest Only’ mortgage if you have another means of paying back the initial loan amount.