Archives: FAQs

What insurance do I need for a mortgage?

The building itself needs to be insured plus life insurance is recommended along with Mortgage Payment Protection Insurance which is designed to pay your mortgage payments if you are either off work due to accident or sickness or lose your job due to redundancy. Independent whole of market quotes can be provided on request.

Can I use a guarantor for my mortgage?

Yes if your income is not enough to get the mortgage amount required then a close family member(usually parents) can act as a guarantor however the guarantor will need to prove that they can afford all of the mortgage in addition to any mortgage they may have of their own.

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

A repayment mortgage is guaranteed to pay off your mortgage by the end of the 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 either sell your property to repay the mortgage or find the money to repay it from another source by that time.

How much will a mortgage cost each month?

The cost of the mortgage is governed by three things, the amount borrowed, the term of the mortgage and the interest rate charged and therefore is quite specific to each individual. A general rule of thumb would be about one third of your total take home pay would be the maximum that most lenders would provide a mortgage for.

What is life assurance and how does it work?

Life assurance helps to protect your loved ones financially in the event of your death. You choose the amount of cover you need and the length of time you want to be insured for. Your policy is designed to pay out your chosen amount of cover if you die during the term of the policy.

What is home insurance?

Home insurance cover comes in two parts – buildings insurance and contents insurance. You can choose either one or both of these based on your needs.

Buildings cover insures your bricks and mortar for events like fire and weather damage, while contents cover could protect your belongings against problems like theft, damage and loss.

Buying a combined policy from the same insurer can often be cheaper than getting two separate policies.

What are secured loans?

Secured loans, also known as homeowner loans, are loans secured against your property. Secured loans are ideal if you want to borrow a large amount of money and are usually used to consolidate existing credit or to make home improvements.
Because your property is provided as collateral for the loan, loan providers see you as less of a risk. However, your home could be at risk if you are unable to repay the loan.

How much can I borrow?

The amount that each person can borrow is based on their income, their current credit commitments and to some extent the amount of deposit they have.

How much deposit do I need?

The minimum deposit can be as low as 5%. Normally the minimum deposit is 10% however there is a significant reduction in the interest rates available once the deposit reaches 15%.