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Category: MORTGAGE APPLICATION
MORTGAGE APPLICATION
What does a conveyancer do?
A conveyancer in the UK is a legal professional who specializes in the legal aspects of buying and selling property. They play a crucial role in ensuring that property transactions are completed legally and smoothly. Here’s an overview of what a conveyancer does: 1. Initial Steps and Client Instruction 2. Pre-Contract Stage 3. Exchange of… Read more
Combined loan to value (CLTV) explained
In the UK, Combined Loan to Value (CLTV) ratio is a financial metric used primarily in mortgage lending. It represents the ratio of the total amount borrowed (through mortgages and any other loans secured against the property) to the value of the property being purchased or refinanced. Here’s how CLTV is calculated and its significance:… Read more
Understanding AML (Anti-Money Laundering) checks
During a UK mortgage application, lenders are required to conduct checks to prevent money laundering and ensure compliance with anti-money laundering (AML) regulations. These checks are part of the Know Your Customer (KYC) process and typically involve the following steps: 1. Identification and Verification of Customer (ID&V): 2. Source of Funds: 3. AML Checks: 4.… Read more
Choosing a 2, 5 or 10 year fixed mortgage
Choosing between 2-year, 5-year, and 10-year fixed-rate mortgages depends on individual financial circumstances, risk tolerance, and future plans. Here’s a breakdown of who each type of mortgage might suit: 1. 2-Year Fixed-Rate Mortgage: 2. 5-Year Fixed-Rate Mortgage: 3. 10-Year Fixed-Rate Mortgage: Summary: Choosing the right fixed-rate mortgage depends on balancing personal circumstances, financial goals, and… Read more
Is it possible to obtain a mortgage for a property above a shop?
Yes, it is possible to get a mortgage in the UK for a property located above a shop, but there are some considerations and potential challenges to be aware of: 1. Lender Criteria: 2. Valuation and Mortgage Approval: 3. Potential Issues: 4. Legal and Planning Considerations: 5. Insurance and Maintenance: 6. Mortgage Process: Example Scenario:… Read more
Can I apply for a UK mortgage if I live abroad?
Yes, you can apply for a UK mortgage if you live abroad, but the process can be more complex compared to applying as a UK resident. Here are the key points and considerations: Types of Mortgages for Expatriates: Key Considerations: Steps to Apply: Example Scenario: Suppose you are a UK citizen working in the United… Read more
Defaults on your credit file, what are they?
default on your credit file indicates that you have failed to make payments on a credit agreement, such as a loan, credit card, or mortgage, for an extended period (usually at least three to six months). When you default on a credit account, the lender closes your account and records the default on your credit… Read more
Identification documents you will need to provide, when applying for a mortgage
When applying for a mortgage in the UK, you will need to provide several types of identification and documentation to verify your identity, income, and financial status. Here is a detailed list of the most commonly required documents: Proof of Identity: Proof of Address: Proof of Income: Proof of Financial Stability: Additional Documentation: Summary: For… Read more
Sub-prime mortgages – what you need to know
A sub-prime mortgage in the UK is a type of loan offered to individuals who have poor credit histories or other financial circumstances that make them a higher risk for lenders. These mortgages are designed for borrowers who do not qualify for standard (prime) mortgages due to factors such as a history of missed payments,… Read more
Will a probationary period stop me being able to apply for a mortgage?
Being in a probationary period does not automatically disqualify you from applying for a mortgage in the UK, but it can make the process more challenging. Here’s how a probationary period can affect your mortgage application and what you can do to improve your chances of approval: How Probationary Periods Affect Mortgage Applications: Steps to… Read more