faqs

Frequently Asked Questions

A mortgage is a loan that is secured against a property. The mortgage provider will lend money equivalent to the value of the property, generally in order to allow you to purchase the property outright.

Variable Rate Mortgages
When you take out a variable rate mortgage, you pay interest at what is known as the specific lenderís standard variable rate, or SVR. The SVR will fluctuate, very broadly in line with inflation and with changes in the Bank of Englandís base rate, but exactly how it does change is ultimately up to the lender.

Tracker Mortgages
The interest rate on a tracker mortgage changes regularly directly with the Bank of England base rate, remaining constantly at a set percentage above Bank of England Base rate.

Fixed Rate Mortgages
When you take out a fixed rate mortgage, the level of interest you will pay stays the same throughout the fixed rate term. Terms could be 2, 3, 5 or 10 years usually.

Valuation costs
Arrangement fees (if applicable Ė these are charged by the lender depending on the mortgage deal chosen)

There are different types of mortgages available

Repayment Mortgages
With these kinds of mortgages, each month you pay back a portion of what you borrowed, plus interest, until the whole amount is paid off in full.

Interest-Only Mortgages
These work slightly differently; each month you pay only the interest that is being charged, you do not make any payments towards the outstanding balance. At the end of the mortgage term you must pay off the amount that you borrowed in full.

Banks and building societies are cautious about who they lend to, so they always check applicantsí financial history carefully to see if potential mortgage customers have defaulted on any debt payments in the past. Lenders determine whether they will offer you a mortgage based on these factors:
Your credit report Ė Including score, missed payments & defaults.
County Court Judgments
Any bankruptcy proceedings
If any of these scenarios apply, you may become less eligible for most mortgage deals, or you may have to pay a higher rate of interest, even if your financial problems occurred a long time ago.

By law, you must register on the electoral roll, even if you arenít planning to vote. But getting on the register can benefit you as well Ė from helping protect your identity, to increasing your chances of getting credit. So, itís worthwhile registering as soon as you can.

Registering to vote improves your credit score.

Your Credit Score reflects your chances of getting approved by lenders. Itís based on information in your credit report. When you register to vote, your electoral details are also recorded on your report. This data helps lenders confirm your name and address, so your score will increase as a result. In Northern Ireland you can register online via www.gov.uk/register-to-vote. This is the quickest and easiest way to register or update your details.

Whether itís betting on sports, bingo or playing online poker, there are plenty of ways you can indulge your desire to have a punt. Itís now easier than ever to do so from the comfort of your own home, and weíre bombarded daily with TV ads from the ballooning number of online gambling platforms. But if youíre a frequent gambler, could this have an impact on your ability to qualify for a home loan?

Generally, after the term is up, you will revert to paying the lenderís standard variable rate.
Discounted Rate
The interest rate on a discounted mortgage changes when the variable rate or SVR of the lender changes.
Generally, with tracker, discounted and fixed rate mortgages, after the term is up, you will revert to paying the lenderís standard variable rate.

This will depend on the lender and your circumstances Ė some lenders will allow you to have a mortgage up to age 75 (maximum mortgage term of 40 years) others will only allow up to 70 or your normal retirement age.

This will depend on the lender. All lenders use their own affordability calculators, and this will depend on various factors. They will consider your net income, with your regular outgoings and expenses factored in, in order to work out how much you can borrow. They will also look at your credit score and any loans or credit cards you currently have. The difference between the amount borrowed and the actual value of the property is known as the loan-to-value ratio, or LTV.

Typical fees include:

Legal costs
The simple answer is that yes, it can. But the impact that a gambling habit can have on your mortgage application will depend on a combination of factors and will vary from person to person.

Important Information
Your home may be repossessed if you do not keep up repayments on a mortgage
We do not charge fees for arranging your mortgage. However, if you prefer you can pay us a broker fee of up to 1.5% of the mortgage amount and receive the lenders fee yourself.

Disclosure
The Mortgage Advice Shop is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority Registered office: The Mortgage Advice Shop 7 Castle Street, Portadown, Bt62 1BA. Registered Company Number NI054231. Registered in Northern Ireland.

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