Parkside Mortgages

Offering the best mortgage and protection deals,

07554 391994

[email protected]

Get Expert Mortgage Advice

Category: MORTGAGE APPLICATION

MORTGAGE APPLICATION

  • Explaining higher lending charges

    amoore70

    Higher Lending Charges (HLC), also known as Mortgage Indemnity Guarantees (MIG) or Mortgage Indemnity Premiums (MIP), are additional fees that may be applied by lenders in the UK when borrowers take out a mortgage with a high loan-to-value (LTV) ratio. Here’s an in-depth explanation of what HLCs are, how they work, and their implications for… Read more

  • Self build mortgages explained

    amoore70

    ,

    A self-build mortgage in the UK is a type of home loan designed specifically for individuals who are constructing their own property, rather than buying an existing one. These mortgages cater to the unique needs and risks associated with self-building projects, where funds are typically released in stages as the build progresses, rather than as… Read more

  • What is a deed of postponement?

    amoore70

    A Deed of Postponement is a legal document used in the UK mortgage market to change the order of priority of charges secured against a property. This document is typically used when a homeowner has more than one mortgage or secured loan and wants to take out additional financing, such as a further advance or… Read more

  • Second charge mortgages – the advantages and disadvantages

    amoore70

    ,

    In the context of UK mortgages, a second charge refers to a type of secured loan that is taken out against a property that already has an existing mortgage. The second charge loan is subordinate to the first (or primary) mortgage, meaning that if the borrower defaults and the property is sold to repay debts,… Read more

  • Consumer Buy To Let

    amoore70

    , ,

    In the UK mortgage market, “Consumer Buy-to-Let” (CBTL) refers to a specific category of buy-to-let (BTL) mortgages that are regulated differently compared to standard buy-to-let mortgages. The distinction primarily relates to the borrower’s intention and circumstances under which the property is being rented out. Definition and Criteria A Consumer Buy-to-Let mortgage is designed for landlords… Read more

  • Stress ICR (Interest rate affordability stress test)

    amoore70

    The interest rate affordability stress test is a crucial part of the mortgage application process in the UK. It is designed to ensure that borrowers can afford their mortgage repayments not only at the current interest rates but also if rates were to rise significantly in the future. This test is applied by mortgage lenders… Read more

  • Interest coverage ratio (ICR) explained

    amoore70

    , ,

    The interest coverage ratio (ICR) is a financial metric used to assess a company’s ability to pay interest on its outstanding debt. It is calculated by dividing a company’s earnings before interest and taxes (EBIT) by its interest expenses for the same period. The formula is: Interest Coverage Ratio=EBITInterest Expense\text{Interest Coverage Ratio} = \frac{\text{EBIT}}{\text{Interest Expense}}Interest Coverage Ratio=Interest ExpenseEBIT​ Importance of the… Read more

  • Gazumping: How prevalent is it in 2024?

    amoore70

    What is Gazumping? Gazumping occurs when a seller of a property accepts a higher offer from a new buyer after having already agreed to a sale price with an initial buyer, but before the contracts have been exchanged. This practice leaves the initial buyer in a difficult position, often having invested time and money into… Read more

  • The advantages of renting over buying a property

    amoore70

    ,

    Buying a home is one of the most significant financial commitments you’ll make in your lifetime. Navigating the complex mortgage market can be daunting, but using a mortgage broker can simplify the process and offer several advantages. Here’s why you should consider using a mortgage broker to arrange your mortgage: 1. Access to a Wide… Read more

  • Expenditure considerations when applying for a UK mortgage

    amoore70

    When applying for a mortgage in the UK, lenders conduct a thorough assessment of your financial situation to determine your affordability and ensure you can manage the repayments. This assessment includes a detailed look at your income, credit history, and expenditure. Understanding the types of expenditures that lenders take into account can help you better… Read more