Q. What is a Mortgage Broker?
A. Mortgage Brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Mortgage Brokers primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What's more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
Q. Why deal with a Mortgage Broker?
A. Mortgage Brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, Brokers are not limited in the product they can offer you. Brokers seek out the best lender package to suit your specific situation, regardless of the lender.
There is a wide assortment of options and features available to home owners, investors and first time buyers today. Shopping around takes a lot of time and effort. Many people are intimidated by the mortgage process In today's very competitive marketplace. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.
Choosing the wrong mortgage can cost you thousands of extra pounds. Mortgage Brokers are the trained professional who can help you save money on your mortgage.
Q. When should I obtain a pre-approval?
A. You should obtain a pre-approval if you plan on buying or remortgaging in the near future in order to secure an interest rate guarantee from the lender. The interest rate can usually be held for 60 to 90 days. The pre-approval is based on the information you provide to us in your application and may be subject to verification of conditions such as employment and property valuation.
Q. Can I use money gifted to me for a deposit?
A. Yes, most lenders will accept a deposit that is gifted from a family member. A gift letter may be required to be signed by the donor to confirm it is not a loan.
Q. What is the minimum deposit required to purchase a home?
A. The minimum deposit is normally 5% to purchase a home. There are however schemes available for lenders to advance up to 125% of the valuation or purchase price of the property.
Q. If I have a declared bankruptcy can I still qualify for a mortgage?
A. Yes. Some lenders will consider your mortgage application depending on the circumstances surrounding your bankruptcy and your credit history since the bankruptcy has been discharged. The best way to determine if you can qualify for a mortgage after being discharged from bankruptcy is to call a mortgage broker.
Q. What is required to obtain a first Mortgage?
A. In most cases:
* Full time employment/proof of income
* Good credit rating
* Deposit
* Online Approval Application
Q. What can I use for a deposit?
A. In most cases:
* Gift from immediate family
* Accumulated savings
* Sale of existing home
Q. What costs are involved in obtaining a mortgage?
A. Costs include:
* Legal costs (Usually between £400 - £1000)
* Stamp duty
* Insurance on the property and mortgage applicant
* In most cases a valuation is requested
Q. How long does it take to complete a mortgage transaction?
A. If all information requested by the lender is given to the broker in a timely matter than the transaction can be completed in as little as 4 weeks.
Q. Can I get pre-approved before I find the home I want to purchase?
A. Yes. Our lenders offer preapprovals from 60 days to 120 days. When it comes to new construction many lenders will extend that preapproval time to fit the construction schedule. This will allow you to hold a great interest rate while you shop for or build a new home.
Q. How much can I qualify for?
A. Qualifying guidelines vary depending on the lenders criteria and products available. To find out exactly what you can qualify for, please submit your application for a quick approval.
Q. What is the purpose of a mortgage broker?
A. Our only job is to find our clients the absolute best mortgage product to fit their needs. We specialize in mortgage lending and have access to all lending institutions.
Q. How can a mortgage broker get a better rate than my own bank?
A. Mortgage brokers like HT Financial have access to the whole mortgage marketplace whereas Banks and Building Societies are only able to offer their own product range, limiting the customers choice
Q. Other than rates, why should I use a Mortgage Broker?
A. In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favourable rates for each client, but often whether a mortgage is funded at all.
Q. How do Mortgage Brokers Find Superior Rates?
A. Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which proposition attracts a favorable interest rate from one lender, but a higher rate at another. Some lenders, in fact, will only accept mortgage submissions from mortgage brokers.
These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of a lender's portfolio in a particular type of mortgage. Your Mortgage Broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by Brokers are among the best available at the time of placement.
Q. What are the costs to dealing with a Mortgage Broker?
A. Mortgage Brokers do not always charge a fee for their services, but if a fee is warranted, it is negotiated up front and documented.
Fees are based on the complexity, strength and type of mortgage. They are a one-time only charge, and are quoted once the details of the deal have been examined.
Your investment in the professional services of a mortgage broker is generally returned very quickly, not only in time saved, but also in the caliber of the financing received.
Q. Why should I go to a Mortgage Broker first?
A. A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly.
Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your Mortgage Broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result.
You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!
Q. Do Brokers only do Residential Mortgage?
A. Brokers can place all types of loans. All sizes of loans, from small loans backed by a residential property to commercial properties in the millions of pounds, are readily available. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.
In addition to handling straightforward mortgages, mortgage brokers are often called on to assemble financing (based on property assets) for businesses. Mortgage brokers excel in this type of financing package because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times.
Q. How do Brokers get better deals than many Banks and Building Societies?
A. The lenders who work with mortgage brokers include traditional sources, such as Building Societies, Banks, specialist mortgage companies with no high street presence, commercial lending organizations, as well as corporate and private pension funds. In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources.
For best results call your Broker first.
Q. Can I still go through my bank with my Broker?
A. Yes, letting a Mortgage Broker represent you to your own financial institution can often result in a better rate than you could get on your own.
Call us on 0845 3701 606 for a free consultation with one of our friendly and experienced team. We are happy to discuss your situation and help you choose the best option.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR SECURED LOAN.
