Mortgage Broker Birmingham

A fixed rate mortgage is a mortgage that has an interest rate which is fixed for a certain period of time, usually 2, 3 or 5 years. This means that whatever happens to the Bank of England base rate, you will continue to pay your fixed rate for the period of the deal.

These fixed rates usually have Early Redemption Penalties (ERP’s) for the duration of the deal.

• Variable rate: This is the lenders default rate that all mortgages will revert to when any special deal matures. It is usually higher than any other interest rates on offer by the lender, but usually doesn’t have any ERP’s.
• Tracker rate: This interest rate will track the Bank of England base rate plus a margin. This means that if the Bank of England base rate increases by for example 0.25% then the interest rate that you will pay will also increase by this amount.
• Discounted rate: This interest rate tracks the lender’s variable rate usually minus a margin. An example of this would be that if the lender’s variable rate was 7% and you were receiving a discount of 0.25% then you would pay 6.75%.

The answer to this question varies as each lender has their own affordability calculation. If you’re looking for a broad estimate, then using a 4.5 multiplier on your income will provide a possible estimate.

However, if you’d prefer to know a more precise number, then we recommend getting in touch with our local mortgage advisors. We’ll be able to take account of all your circumstances before confirming a more accurate figure.

Most lenders will want to see that you have a minimum deposit of 5% of the purchase price. However, the more you can put down as a deposit, the lower the interest rate the lender is likely to offer you.

It is also possible that a lender may offer a 100% mortgage, albeit this is usually with the help of family. Schemes vary, so it may be worthwhile to consult a consulting an independent mortgage advisor for full details of the products currently available.

• ID – e.g. an in-date passport or driving licence
• Proof of current address i.e. an official document dated within the last 3 months with your name and address on it
• Proof of income – for employed applicants this will be pay slips from your last 3 months and latest P60. Self-employed applicants will need their last 3 years “Tax Calculations” (previously known as SA302’s) and their last 3 years “Tax Year overviews”
• Bank statements from the last 3 months for each account that income is credited, or bills debited

Pre-qualification is based on basic data the applicant submits to a lender. It is designed to provide the applicant with a broad indication of how much a lender may lend.

Mortgage pre-qualification is based solely on the information handed over to the lender, so if the data is inaccurate, it usually doesn’t mean much.

Getting preapproved involves an applicant supplying a lender with their financial details including debt, income, and assets. The lender reviews everything and gives an estimate of how much the borrower may be offered. Since a credit check is usually done, it is generally taken more seriously than a pre-qualification.

A mortgage company will then provide you with a document called an Agreement in Principle (AIP) or Decision in Principle (DIP) that says that you can borrow the amount stated from them; subject to their criteria. Since the AIP is based upon the information provided and has not been checked at this stage, there is a possibility that they will not lend if the information is later shown to be inaccurate.

AIP’s allow you to approach a property seller with this document that says you have the funds to make an offer on the property.

There are currently no first-time buyer (FTB) incentives available. However, there's anticipation surrounding the upcoming budget in March, with rumours suggesting potential incentives for first-time homebuyers. At RM Mortgage Solutions, we have access to lenders who accept Lifetime Individual Savings Accounts (LISAs) for the deposit, which can be a beneficial tool for saving towards your first home purchase. Additionally, it's worth noting that the stamp duty limit for first-time buyers is higher, providing some relief for those entering the housing market for the first time.

• First-time buyer mortgage
• Home-mover mortgage
• Remortgage
• Second charge mortgage
• Buy-to-let mortgage
• Commercial mortgage
• Bridging finance

This depends on whether you are purchasing or remortgaging. With a remortgage, it is possible to find lenders that will offer a free valuation and free legals. They also may offer products with or without a lender’s arrangement fee.

If you are purchasing then you may have to pay a valuation fee (although many offer free basic valuations), solicitor fees, stamp duty and potentially a lender’s arrangement fee.

Lenders each have their own credit scoring systems based on their risk tolerance. If you're unable to meet the criteria of certain lenders due to a low credit score, there are specialised mortgage products available for applicants with poor credit.

In the past, these products often came with significantly higher interest rates compared to mainstream lenders. However, the gap in interest rates has considerably decreased in recent years.

As we an independent Birmingham mortgage company, we can assist with a remortgage whether you wish to raise capital for:

• Home improvements
• Purchase additional property
• Matrimonial settlement
• Holiday home
• Debt consolidation
• Purchase freehold