Richard Esses: 07968 023438 | Graeme Hood: 07921 760169 info@themsolution.co.uk

Frequently Asked Questions

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Frequently asked questions

Are you tied to using only one lender?

No, as part of the Openwork Partnership we can source from over 50 lenders and we will always recommend what we consider to be the right mortgage to suit your needs. We are all CeMap qualified, regulated through being an appointed representative of the Openwork Partnership and offer professional advice.

What is the difference between a repayment mortgage and an interest only mortgage?

A repayment mortgage is guaranteed to pay off your total mortgage by the end of the mortgage term as long as all payments have been made. With an interest only mortgage your monthly payments only pay the interest that is due so at the end of the term you still owe the same amount that you originally borrowed and would need to have a repayment plan in place, which could be to sell the property or find the funds through another source.

Can I repay my mortgage early?
Yes, but beware of early redemption charges (ERC) if you decide to do this during a current deal that you maybe in.
What insurance do you need with your mortgage?
Buildings insurance is a mandatory condition of the mortgage and this will need to be in place from the moment you exchange contracts, as the lenders primary concern is the value of the property. However, it is important to consider contents insurance, life insurance, critical illness cover, and income protection. Please get in touch with us to arrange any of these insurances.
How much stamp duty will I pay for my mortgage?

A first-time buyer won’t pay stamp duty on the first £425,000, on properties that cost up to £625,000, but they will pay 5% on the portion between £425,001 and £625,000.  However, for homes costing over £500,000 they will pay the same as someone who has bought before:

  • Up to £250,000 the rate is zero
  • From £250,001 to £925,000 the rate is 5%
  • From £925,001 to £1,500,000 the rate is 10%
  • From £1,500,001 and upwards the rate is 12%
Why are you recommending a mortgage loan with a rate of 3.99% when I have found a deal at 3.62%?
We source mortgages with the lowest amount to pay over the initial period. For example, a 2 year fixed rate deal would be the monthly payments times by 24 (months) plus any initial arrangement fees which would equal the total to pay over the fixed rate period, this could work out cheaper over the 24 months than the lower rate deal which might have a higher initial arrangement fee. It’s not the rate but the overall cost which is vital.
Do I need great credit to obtain a mortgage?
Not necessarily, but it will certainly help. There are lenders who specialise in mortgage deals for adverse credit but think of it as the higher your score the lower the rate of deal you could obtain and vice versa .
How much of a deposit do I need?

You can put down as little as 5% deposit but the rates would be higher than a 10% or greater. The greater the deposit the more favourable the rates. The percentage of mortgage loan in relation to house value is referred to as Loan To Value (LTV) for example a deposit of £50,000 on a £200,000 house would equate to a 75% LTV mortgage.

What is conveyancing?
Conveyancing refers to the legal work completed by the solicitor or conveyancer you choose when buying or selling a property.