Frequently Asked Questions
Below are some of the most common questions we are asked here at Crawford Mulholland.
What is a mortgage?
A mortgage is a loan you take out to buy a property. The loan is secured against the property, which means if you don't keep up with your mortgage repayments, the lender can repossess your home.
How much can I borrow?
The amount you can borrow will depend on your income, your credit score, and the lender's lending criteria. Generally, lenders will lend up to 4.5 times your annual income.
What types of mortgages are available?
There are several types of mortgages available in the UK, including fixed-rate mortgages, variable-rate mortgages, tracker mortgages, and offset mortgages.
What is a fixed-rate mortgage?
A fixed-rate mortgage is a mortgage where the interest rate stays the same for a set period of time, usually between two and five years.
What is a variable-rate mortgage?
A variable-rate mortgage is a mortgage where the interest rate can go up or down, depending on the Bank of England base rate or the lender's own rate.
What is a tracker mortgage?
A tracker mortgage is a mortgage where the interest rate tracks the Bank of England base rate, usually at a set percentage above or below it.
How long does a mortgage last?
Most mortgages last between 25 and 35 years, although it is possible to get a mortgage with a shorter or longer term.
What is a deposit?
A deposit is the amount of money you put down towards the purchase of a property. The minimum deposit required is usually 5% of the property value.
What is a mortgage agreement in principle?
A mortgage agreement in principle is a statement from a lender saying that, based on your income and credit history, they would be willing to lend you a certain amount of money to buy a property. It's not a guarantee that you will be approved for a mortgage, but it can be helpful when house hunting.
What are the fees associated with a mortgage?
When getting a mortgage, there are several fees you may need to pay, including arrangement fees, valuation fees, legal fees, and early repayment fees. It's important to factor in these costs when budgeting for your mortgage.
How long does the process take?
Typically 8 to 12 weeks. However, it can take more or less time based on different things, such as how complicated the process is, or how long it takes to do important things like surveys. Sometimes there can be unexpected problems that cause delays, such as legal problems or issues with the house or mortgage.