Frequently Asked Questions
Q. How much can I borrow?
A. This depends on the plan you choose. However, most lenders use an affordability model.
Q. Who has the cheapest mortgage?
A. This will depend on your individual requirements, from which we can determine the lender you could use, the type of scheme you prefer (fixed, variable), how long you would like the term to be over, how long any special rate lasts for (e.g. fixed for 5 years), whether you go for a low rate with fees or a higher rate with no fees, redemption penalties, tie in period or not, plus many other factors.
Q. Which is best, an interest only or a repayment mortgage?
A. A repayment remortgage guarantees to repay your mortgage, interest only does not. Some lenders insist on a repayment vehicle for an interest only remortgage – the interest plus the cost of the repayment vehicle will be no cheaper than a repayment mortgage. You might be able to pay off your mortgage early using a repayment vehicle but then again it might take longer – there is no guarantee.
Q. I have experienced difficulties with making credit payments. Can I get a mortgage?
A. This will not prevent you from getting a remortgage unless you are bankrupt. The rate will be higher than normal and it may cost more to arrange. You will need a bigger deposit, typically between 10% and 30%.
Q. I am self employed so do not have any wage slips, can I still get a remortgage?
A. Yes, there a lenders that will provide mortgages to self employed people, you will need to have audited accounts.
Q. What Repayment methods are available?
A. The two main ways to repay your mortgage are 'repayment' and 'interest only'. With a repayment mortgage you make monthly repayments for an agreed period of time. With an interest only mortgage you make monthly repayments for an agreed period but these will only cover the interest on your loan. You'll normally also have to pay into another savings or investment plan that'll hopefully pay off the loan at the end of the term.
The overall cost for comparison is 5.5% APR.
*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED ON IT.
(Re)Mortgages & Homeowner Loans are undertaken by our in-house Mortgage Advisors at Moneycall Limited which is Regulated & Authorised by the Financial Services Authority
