Mortgage Advice FAQ's - Mortgages 101

Mortgage Advice FAQ's

Higher Lending Charges
Self Employed
Credit Problems
Hidden Costs
Free Advice
First Time Buyer
Early Repayment Charges
Large Loans
Mortgage Options

What are Higher Lending Charges?
These are fees that lenders will charge for loans over a certain amount (usually 80%). The premium buys cover for the lender which will protect them if you were to default on a loan. In this instance, following the repossession and sale of the property any loss is reimbursed by the Higher Lending Charges. The important point here is that although you the borrower pay the premium on the policy it is of no benefit to you. If the lender calls upon the policy to recover his losses the insurer who provided the guarantee can still come after you for the amount that they have paid out.

I am self-employed. Can I get a mortgage?
Yes. Whilst many high street lenders will exclude them We specialise in finding the best deals around for the self employed. A number of lenders will want two years of full accounts but this is not the case throughout the market and we should be able to solve any difficulties you may have encountered. Contact us with your individual circumstances and let us find you your mortgage.

I have had financial difficulties in the past.
How will this affect me?It depends on what those problems were and how long ago they occurred. Some lenders will deduct the annual payments to creditors or in respect of any debts outstanding, before applying their income multiples. In the case of mortgage arrears most lenders will want to see that they have been brought up to date and maintained for 6-12 months. County Court Judgements (CCJ) may pose a problem and again, it will depend on whether there is more than one, the size of the judgement and whether they have been satisfied. In some cases a lender may accept a suitable explanation for your CCJ.There are also a number of lenders who specialise in this area of the market and they will often lend where other mortgage companies may decline. If you contact us with your circumstances we will be able to find the best option available for you.

There are a large number of very attractive deals available.
What are the catches?There are a number of points to watch out for and we would always suggest that you speak to one of our dedicated team of mortgage specialists. There are however things to watch out for. A number of the deals that may be offered are designed to attract new business to the lenders, who then hope to keep you as a customer beyond the initial incentive period so they can recoup their costs. You will therefore find that some of the most attractive deals around will impose early early repayment charges if you wish to repay the mortgage within the incentive period and beyond. The key is to find the lowest penalties that apply over the shortest period of time. This will then allow you to reassess your options when the initial period is over and, if it makes sense to do so, move your mortgage to another lender to attract a further incentive deal. Lenders will also in a number of cases charge an arrangement fee to access these deals. With such a bewildering array of options open to you the easy alternative is to allow us to search the market to find the mortgage that is right for you and will save you money.

Will Flexible-Finance charge me a fee to find my mortgage?
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be two hundred and ninety five pounds plus up to one percent of mortgage amount. These are detailed on our terms of business (IDD). Download our Initial Disclosure Document here.

I am a first time buyer and I suspect I may need a 100% mortgage. What are my options?You will find it almost impossible to get a 100% mortgage currently but it may be possible to get you a mortgage using a shared equity scheme. Most likely the maximum you will be able to borrow is 95%.

How do Early Repayment Charges affect me?
Generally an early repayment charge will be charged if you cash in a fixed, discounted or capped rate mortgage during the first few years. They are usually a few months interest payments, which can run into thousands of pounds. Talk to your Flexible-Finance mortgage specialist about any charges/penalties that may apply on loans you are considering.

I am looking for a large loan – in excess of £500,000? What problems will I face?
Those who are looking for larger mortgages will have larger earnings, possibly made up of a package of salary, bonuses and share options. This can be an unfamiliar client profile to some high street lenders and you may need some help as you mayl not fit some companies standard criteria. Some mortgage products may set a maximum loan of £250,000 so you will need to be able to research the whole market for the best deals.

Some borrowers requiring larger mortgages may need the flexibility to allow chunks to be paid off early when, for example, bonus payments are received, and without big penalties for doing so. Some borrowers may favour shorter term mortgages over periods of as little as 5 years enabling rapid repayment of the loan.

Frequently people seeking large mortgages are keen to have a rapid response from lenders, and Flexible-Finance always aims to ensure that the borrower receives the personal service of a specialist in this area to provide the information they require.

What type of mortgage should I go for? Repayment, Interest Only?
There is no one easy answer to this question. Much is written about the merits of the various types of mortgages (see our Mortgage Guide) but the simple fact is that you will need advice as to which option best suits your circumstances. But that’s where we can help. Contact one of our dedicated team of advisers and they will ensure that you receive their expert advice.

For a mortgage secured on a property, insurance may be required. Written quotations are available on request. APR may vary.

So, why use a mortgage broker?

Because we will help you save your time, your effort and your money!

Flexible-Finance.COM is an Appointed Representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.
The Mortgage information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. * Some of these products and services are not regulated by the Financial Services Authority