General FAQs

How much can I borrow ?

The amount you can borrow is dependent on your particular circumstances, plus the amount of equity you have and the deposit you have available.

You can speak to one of our in-house advisers who will be able to assess your circumstances and advise you on how much you can borrow given your current situation. This service is completely free, there is no credit check required at this point, and you are under no obligation.

How do lenders assess borrowers ?

There are generally no checks performed in order to obtain indicative mortgage quote, however lenders will always perform a risk assessment on a borrower when a full mortgage application is made

Risk assessments are done both to ensure that the lenders risk is minimised, and so that the borrower does not suffer any financial hardship as a result of the borrowing. In doing so the lender will consider a number of factors in assessing risk.

A lender will undertake an affordability assessment of the borrower by looking at their income(s), and their outgoings to ensure that the borrowing is affordable. Once this assessment has been done, the lender can determine what level of monthly mortgage repayments the borrower can afford.

Ultimately once a full mortgage application is submitted, lenders will also do a credit check on a borrower, usually with a credit reference agency. This will help them determine the reliability of the borrower to repay the mortgage on time. Your credit score is influenced by your previous borrowings, your types of borrowing, e.g. credit cards or payday loans, and how often you have defaulted, etc.

The Financial Conduct Authority (FCA) has made it compulsory for lenders to carry out stress tests on borrowers applying for a mortgage. This requires the lender to assess and predict the effects on a borrower of some kind of ‘financial emergency’, to ensure that the borrower can weather the storm and recover without ending up in a precarious financial situation.

How much deposit will I need ?

Your deposit is the amount of money you’ve saved up to put towards your first home and it will help determine how much you then need to borrow as a mortgage.

The more money you’ve saved as a deposit, the less you’ll need to borrow from the bank. And if you have a bigger deposit, you’ll have access to more competitive mortgage rates. As well as saving for your initial deposit, you’ll also need funds to put towards fees like property searches, surveys, mortgage arrangement fees, solicitor’s fees, stamp duty, home insurance, removal costs and so on.

What type of mortgages are there ?

There are a number of different types of mortgage available as follows:

Repayment mortgages - With a repayment mortgage your mortgage payments will consist of part interest and part capital repayment. At the end of the mortgage term (commonly 25 years) you would normally have paid the mortgage off completely, and at that point own your home entirely.

Interest only mortgages - With an interest only mortgage your monthly mortgage payments only cover the interest portion of the loan, and no repayment of the principle capital is required. However, at the end of the loan term the principle amount will remain outstanding. While interest only mortgages allow you to make lower monthly payments, you will still have to demonstrate that you have feasible plan to pay off the capital remaining owed.

Variable mortgages - Variable rate mortgages could be fully variable where the lender sets the rate and can change it at any time. They may also be tracker mortgages, which are set to Bank of England base rate plus or minus a particular percentage. There are also other types of variable rate mortgage available including capped and collared mortgages which can have upper and lower rate limits. With any type of variable rate mortgage your monthly payments could go up as or down as interest rates change.

Fixed rate mortgage - With fixed rate mortgages, as you’d expect, the interest rate and your monthly repayments are fixed certain percentage for an agreed length of time. These are commonly fixed to 2,3, or 5 year deals, but there are also some 10 year fixed rate mortgages are available. At the end of the fixed term, your mortgage will usually be switched to the banks standard variable rate (SVR), and this is when most people remortgage their property.

What information will I need to provide ?

The earlier you can provide the required documentation, the quicker and easier your application will be ...

The information you will need to provide for a full mortgage application is gernerally the same for most mainstream lenders. Many mainstream lenders still won’t accept bank statements printed from the internet, so you may need to request paper copies from your bank. Most lenders will request the following documents:

  • Your last 3 months bank statements
  • Your last 3 months pay slips
  • Your last 3 years accounts/tax returns (self-employed)
  • Proof of bonuses/commission
  • Your latest P60 tax formID documents (usually a passport)
  • Proof of address (eg. utility bills or credit card bills)

It is best to have these available a few weeks in advance just in case you have to wait for HMRC to send original documentation to you when required.

When will I need a solicitor to be involved ?

It will be beneficial for you to have an Agreement in Principle and solicitors lined up before you start viewing properties to buy. This is because as a qualified buyer you are in a more serious position to proceed to with a purchase compared with the other large number of speculative offers they receive from non-qualified buyers.

Your solicitor will liaise with the mortgage company and the vendor’s solicitor in order to conduct the necessary searches and surveys, and will ensure that all the legal requirements of the process are completed.

Other considerations for successful applications

Making sure you get your application accepted ...

In addition to the ‘financials’, there are a number of other factors a lender will consider when approving a mortgage application. To ensure your success, as a self-employed individual you should consider:

  • Consult a mortgage broker - Different lenders have different criteria, and using a broker will make sure you don’t waste time applying with unsuitable lenders, and rather only make applications with the right lender(s) first time.
  • Check your credit score - Make sure there are no adverse entries on your credit file. If there are, it doesn’t necessarily mean you can’t qualify as some lender’s criteria is stricter than others.
  • Ensure that you are on the electoral role - If you are unsure check with your local council. This is an important factor when it comes to your credit rating.
  • Get your accounts up to date - These types of loan can adversely affect your credit rating because lenders view these type of borrower as being in financial difficulty. Many lenders will decline applications where there has been recent activity with payday lenders
  • Avoid payday loans - These types of loan can adversely affect your credit rating because lenders view these type of borrower as being in financial difficulty. Many lenders will decline applications where there has been recent activity with payday lenders
  • Sort out your deposit early on - Be prepared early and have the funds readily available as soon as you can.
  • Don’t max out your credit - Avoid using your full credit limit on credit cards. Also look to avoid making only the minimum payments, because this means that the actual debt is never being paid off and lender’s will consider this a negative.
  • Keep credit checks to a minimum - When using comparison websites for financial products such as insurance they will carry out multiple credit checks. Too many of these over a short period of time can have a detrimental effect on your credit rating.

It is best to have these available a few weeks in advance just in case you have to wait for HMRC to send original documentation to you when required.

First-time-buyer FAQs

What defines a first-time buyer ?

A first-time buyer is classified as such when they purchase their main or only residence, and have never yet owned a freehold or leasehold residential property either in the UK or abroad.

How much deposit will I need ?

You will need to save a deposit before looking to purchase a property. In most cases you’ll need to save at a minimum deposit of between 5-20% of the value of the property. So for example, if you wanted to purchase a property for £200,000 you’d need to have at least £10,000 available as a deposit. The more deposit you have the greater will be the range of available mortgages. Also with larger deposits you will be able to obtain more competitive interest rates.

How much stamp duty do I pay?

As a first-time buyer you will not be required to pay any stamp duty on the first £300,000 on any property costing up to £500,000. You will then pay 5% on the value between £300,001 and £500,000. For properties being purchased over £500,000 you will be required to pay stamp duty on the same scale as someone who has purchased a property previously:

0% rate for the first £125,000
2% rate for £125,001 to £250,000
5% rate for £250,001 to £925,000
10% rate for £925,001 to £1,500,000
12% rate for £1,500,001 and upwards

What fees are payable ?

It is important to review all the costs associated with a mortgage as well as the interest rate …

Most remortgages will have fees and costs attached, including arrangement fees, legal costs, and valuation fees, and some also carry repayment charges or redemption penalties. You will generally need to pay:

1. Valuation fees (some lenders can offer this free as part of a remortgage deal)
2. Administration charge
3. Solicitors legal fees
4. Exit fees (sometimes payable if your existing mortgage has not come to the end of its term yet)

Some lenders can provide free valuations, as a way of securing more business, but others will require a new valuation report do be carried out which will incur a fee. To ensure you have considered all the costs properly, it is helpful to check the APR, as this provides the annual percentage rate which includes the full costs. This is helpful, especially when comparing different providers deals.

Can I get help buying my first home ?

A Government-backed scheme called ‘Help-to-Buy’ is available offering assistance for those looking to get on the property ladder for the first time. There are a number of lenders who participate in this scheme which we can help match you with

Remortgage FAQs

How can a remortgage help me ?

Many people seek to free up spare cash by reducing their monthly mortgage payments with a remortgage. Others can look to obtain a fixed rate to avoid inflation in the future. Alternatively, others may wish to pay off their mortgage quicker, or raise capital to invest in their home.

Can I remortgage to consolidate debts ?

Yes, you can lump all of your outstanding debts into a single more manageable monthly payment which reduces your monthly financial pressure. This will help you to keep up with your repayments, and avoid any penalty charges incurred by late payments. Alternatively, if you release cash by remortgaging, that cash can be used to clear debts altogether.

Which Remortgage deal is best for me ?

Individual circumstances are usually different for different people, so therefore each mortgage product will be different in order to reflect individual needs. Remortgage deals are tailored to each individual’s particular needs, their home, and their financial situation. It is therefore always best to obtain expert financial advice from a qualified adviser before making any changes.

What fees are payable for remortgaging ?

When remortgaging your home there is usually an arrangement fee for the new mortgage. Fees payable vary from lender to lender. You may also need to pay:

1. Valuation fees (some lenders can offer this free as part of a remortgage deal)
2. Administration charge
3. Solicitors legal fees
4. Exit fees (sometimes payable if your existing mortgage has not come to the end of its term yet)

Remember to account for these costs when you are working out how much you will save when remortgaging.

Moving house FAQs

How do lenders assess borrowers ?

There are generally no checks performed in order to obtain indicative mortgage quote, however lenders will always perform a risk assessment on a borrower when a full mortgage application is made

Risk assessments are done both to ensure that the lenders risk is minimised, and so that the borrower does not suffer any financial hardship as a result of the borrowing. In doing so the lender will consider a number of factors in assessing risk.

A lender will undertake an affordability assessment of the borrower by looking at their income(s), and their outgoings to ensure that the borrowing is affordable. Once this assessment has been done, the lender can determine what level of monthly mortgage repayments the borrower can afford.

Ultimately once a full mortgage application is submitted, lenders will also do a credit check on a borrower, usually with a credit reference agency. This will help them determine the reliability of the borrower to repay the mortgage on time. Your credit score is influenced by your previous borrowings, your types of borrowing, e.g. credit cards or payday loans, and how often you have defaulted, etc.

The Financial Conduct Authority (FCA) has made it compulsory for lenders to carry out stress tests on borrowers applying for a mortgage. This requires the lender to assess and predict the effects on a borrower of some kind of ‘financial emergency’, to ensure that the borrower can weather the storm and recover without ending up in a precarious financial situation.

How much deposit will I need ?

Your deposit is the amount of money you’ve saved up to put towards your first home and it will help determine how much you then need to borrow as a mortgage.

The more money you’ve saved as a deposit, the less you’ll need to borrow from the bank. And if you have a bigger deposit, you’ll have access to more competitive mortgage rates. As well as saving for your initial deposit, you’ll also need funds to put towards fees like property searches, surveys, mortgage arrangement fees, solicitor’s fees, stamp duty, home insurance, removal costs and so on.

What type of mortgages are there ?

There are a number of different types of mortgage available as follows:

Repayment mortgages - With a repayment mortgage your mortgage payments will consist of part interest and part capital repayment. At the end of the mortgage term (commonly 25 years) you would normally have paid the mortgage off completely, and at that point own your home entirely.

Interest only mortgages - With an interest only mortgage your monthly mortgage payments only cover the interest portion of the loan, and no repayment of the principle capital is required. However, at the end of the loan term the principle amount will remain outstanding. While interest only mortgages allow you to make lower monthly payments, you will still have to demonstrate that you have feasible plan to pay off the capital remaining owed.

Variable mortgages - Variable rate mortgages could be fully variable where the lender sets the rate and can change it at any time. They may also be tracker mortgages, which are set to Bank of England base rate plus or minus a particular percentage. There are also other types of variable rate mortgage available including capped and collared mortgages which can have upper and lower rate limits. With any type of variable rate mortgage your monthly payments could go up as or down as interest rates change.

Fixed rate mortgage - With fixed rate mortgages, as you’d expect, the interest rate and your monthly repayments are fixed certain percentage for an agreed length of time. These are commonly fixed to 2,3, or 5 year deals, but there are also some 10 year fixed rate mortgages are available. At the end of the fixed term, your mortgage will usually be switched to the banks standard variable rate (SVR), and this is when most people remortgage their property.

What information will I need to provide ?

The earlier you can provide the required documentation, the quicker and easier your application will be ...

The information you will need to provide for a full mortgage application is gernerally the same for most mainstream lenders. Many mainstream lenders still won’t accept bank statements printed from the internet, so you may need to request paper copies from your bank. Most lenders will request the following documents:

  • Your last 3 months bank statements
  • Your last 3 months pay slips
  • Your last 3 years accounts/tax returns (self-employed)
  • Proof of bonuses/commission
  • Your latest P60 tax formID documents (usually a passport)
  • Proof of address (eg. utility bills or credit card bills)

It is best to have these available a few weeks in advance just in case you have to wait for HMRC to send original documentation to you when required.

What fees are payable ?

It is important to review all the costs associated with a mortgage as well as the interest rate

Most remortgages will have fees and costs attached, including arrangement fees, legal costs, and valuation fees, and some also carry repayment charges or redemption penalties. You will generally need to pay:

1. Valuation fees (some lenders can offer this free as part of a remortgage deal)
2. Administration charge
3. Solicitors legal fees
4. Exit fees (sometimes payable if your existing mortgage has not come to the end of its term yet)

Some lenders can provide free valuations, as a way of securing more business, but others will require a new valuation report do be carried out which will incur a fee. To ensure you have considered all the costs properly, it is helpful to check the APR, as this provides the annual percentage rate which includes the full costs. This is helpful, especially when comparing different providers deals.

When will I need a solicitor to be involved ?

It will be beneficial for you to have an Agreement in Principle and solicitors lined up before you start viewing properties to buy. This is because as a qualified buyer you are in a more serious position to proceed to with a purchase compared with the other large number of speculative offers they receive from non-qualified buyers.

Your solicitor will liaise with the mortgage company and the vendor’s solicitor in order to conduct the necessary searches and surveys, and will ensure that all the legal requirements of the process are completed.

Lifetime mortgages FAQs

How do I receive the money?

You can choose to receive the money as a one-off lump sum tax free, as a number of regular withdrawals, or as a regular monthly income.

How you choose to receive the funds will be dependent on your circumstances and how you wish to use the funds. So for example, if you want to help a family member get on the property ladder with their first deposit a lump sum withdrawal would be required. However, if you wish to supplement your retirement income, then drawing a regular monthly income may be preferential.

It is important to remember that releasing equity will reduce the amount of inheritance you can pass on, and may also affect your tax position and your welfare benefits eligibility. For this reason, it is prudent to speak with a qualified advisor. Needless to say, Advice Wise hold all the necessary qualifications and authorisations to offer this advice.

Do lifetime mortgages differ to equity release?

Although a lifetime mortgage is a form of equity release, the difference between them is that with a lifetime mortgage you retain full ownership of your home.

With the old equity release (home reversion plans) you actually sell a share of your home in return for the cash you release. The amount you receive with a home reversion plan is usually below the current market value. The other main difference is that with lifetime mortgages the interest builds up compounding over the years of the mortgage. Because home reversion plans are not loans there is no interest.

Are lifetime mortgages regulated by the FCA?

Yes, lifetime mortgages are regulated by the Financial Conduct Authority.

Advice Wise is authorised by the FCA and holds the a Certificate in Regulated Equity Release (LIBF) / CeRER enabling us to provide clients with independent and impartial advice on lifetime mortgages.

How do interest and repayments work?

You are not required to make any monthly payments with a lifetime mortgage.

The interest will build up year on year, and the loan capital and interest are both paid off from the sale of your home. The loan is paid off when you pass away, go into long-term care, or choose to redeem the loan for another reason.

Can I guarantee an inheritance?

Yes, an inheritance guarantee is offered by some providers which can ensure that you leave a certain percentage of your home to your next of kin. This can however reduce the amount of equity you can release.

How long does it take?

Lifetime mortgages on average take 6-10 weeks from the point of application to the receipt of funds. Our advisers can help make sure that your application is successful and is completed within the necessary timeframe.

Are lifetime mortgages safe?

All types of equity release products including lifetime mortgages are regulated by the Financial Conduct Authority (FCA).

Stringent rules are imposed by the FCA on financial advisers and the lenders who provide these products. Financial advisers who provide specialist advice on lifetime mortgages must hold the appropriate FCA authorisation in addition to the necessary professional qualification. Advice Wise Ltd is authorised and regulated by the FCA, and we also hold a Certificate in Regulated Equity Release (LIBF) / CeRER.

Can I sell or move home?

Yes, you can sell your home. Unlike other forms of equity release such as home reversion plans, with lifetime mortgages you retain full ownership of your home. Therefore, you are free to sell your home as you wish at any time. Naturally the lifetime mortgage (like most others) will need to be redeemed once you sell your property.

Are there affordability checks?

No, lender’s affordability checks are not necessary for lifetime mortgages, however your financial adviser will look into your income and expenditure to ensure that they are providing you with the best advice on the mort suitable product for your circumstances.

Will it reduce my Inheritance tax liability?

Perhaps, a lifetime mortgage could affect the amount of inheritance tax your estate will have to pay. Our financial advisers are qualified to provide guidance and recommendations with regard to this matter.

Does a lifetime mortgage affect my benefits?

Yes, funds released from a lifetime mortgage can affect any means-tested benefits that you receive such as pension credits or council tax credits etc. Other benefits which are not impacted include your state pension and any benefits regarding disability and health. It is important to discuss these with your financial adviser when looking at a lifetime mortgage.

Can I repay a lifetime mortgage early?

Yes, with most lifetime mortgages you can usually repay the loan in full, but with some you may incur early repayment charges. This differs between providers and products so it is important to check these with your financial adviser. Other factors which impact this also include the amount of time you have held the lifetime mortgage and the precise reason for wishing to pay it off.

Who are the Equity Release Council?

The Equity Release Council (ERC) is an independent organisation created to promote and support the providers of these products. The ERC’s strict rules and principles provide a framework for providers to adhere to in order to safeguard consumers who use these products.

Do I need professional advice?

Yes, you will need professional advice from a suitably qualified adviser within an FCA authorised firm

Lifetime mortgages have become more popular in recent years with many people considering them as part of their retirement planning. It is very important however to engage an appropriately authorised and qualified financial adviser to ensure that you understand how a lifetime mortgage works and all its terms and conditions. It is important to realise that it will have an impact on any inheritance you leave as well as your rights to certain benefits.

Due to this, it is a regulatory requirement to speak with an appropriate financial adviser prior to taking on a lifetime mortgage. Our financial advisers have the necessary authorisation, qualifications, and experience to consider your circumstances, and your needs and preferences in order to ensure that you get the most suitable solution.

How do I know if my adviser is qualified?

Our professional in-house advisers are qualified to provide advice on lifetime mortgages and hold the Certificate in Regulated Equity Release (LIBF) / CeRER necessary to provide such specialist advice.

Buy-to-let FAQs

How are BTL mortgages different to standard mortgages?

You cannot live in the property yourself if you have a buy-to-let mortgage, so if this is your aim you should get a standard residential mortgage instead. There are some basic differences between a standard mortgage and a buy-to-let mortgage that can potentially make getting a buy-to-let mortgage more challenging.

Mortgage lenders tend to view buy-to-let mortgages as having a higher risk than standard residential mortgages. This is because landlords can sometimes experience problems with collecting rents, and vacant periods where there is no tenant in place and hence no rental income.

Due to the higher risk involved for lenders, landlords are usually required to pay a larger deposit for a buy-to-let mortgage. The minimum deposit required is usually around 25% (of the property value), although this does vary between lenders and precise type of mortgage. There have been some deals available with a 20% mortgage, but with higher rates. The best buy-to-let mortgage deals tend to require a higher deposit which can be as high as 40%. Arrangement fees also tend to be higher than those applied to standard residential mortgages.

The majority of buy-to-let mortgages are interest only as opposed to capital and interest mortgages which tend to predominant with standard mortgages. So landlords only tend to service the loan by paying only the interest and not making any capital repayments. This usually means that the monthly payments are lower, however, the mortgage remains outstanding at the end of its period. Landlords will then either re-finance the mortgage, sell the property to repay the loan and take profit from the increased value, or pay off the mortgage with accrued savings they’ve made over time.

How much can I borrow on a Buy-to-let?

The amount you are able to borrow on a buy-to-let mortgage will depend on how much rent you can receive from your tenants. Lenders usually require you to receive at least 125% of your monthly mortgage interest payments, but many can require up to 140%

It is fairly straightforward to estimate how much rent you can achieve from your property by looking at similar properties in the area. However, a lender will normally require verification of the rental value from a professional surveyor. The corollary is that the more you charge in rent, the more you can borrow.

Just like standard mortgages, a buy-to-let mortgage has a loan-to-value (LTV) ratio. This is calculated by the size of your mortgage as a percentage of the property’s value. For example, if your property is valued at £150,000 and your mortgage is £120,000, then your LTV will be 80%.

Who can get a BTL mortgage?

Before applying for a buy-to-let mortgage there are certain that, as a borrower you must meet so as to be eligible ...

First you need to already own a home yourself, with or without a residential mortgage. The lender will then assess your financial circumstances in much the same as they do for standard residential mortgages. It will be easier for you to obtain a good deal if you have a healthy credit rating and don’t have large debts such as credit cards, or other loans. A lender will also assess your income, with many requiring a landlord to have an annual income of at least £25,000.

The majority of lenders also set upper age limits, usually 70-75 years old (at the end of the mortgage term). Because most mortgages tend to be 25 years, you would normally have to be around 45-50 years old, or younger. There are some lenders that have higher age limits, sometimes as high as 90 years old..

What happens at the end of a BTL mortgage term?

When your interest-only mortgage comes to the end of its term you will need to pay off the outstanding capital element. Mostly this is achieved by selling the property, the point at which landlords make the majority of their profit. However, in some situations, particularly if the value of the property has fallen then a loss can be incurred.

Can a standard pension move to a SIPP?

There is a vast array of providers, each with a choice of different mortgage types. Sorting through these to find the best deal can be arduous and sometimes confusing ...

Our advisers are plugged into all the latest deals from every lender in the market. With some very basic information, we can match you to the best deal available for your circumstances very quickly, and usually obtain an indicative offer in a few minutes.

By using a specialist broker / adviser like ourselves you are assured of obtaining the best deal available in the market at the current time.

Do I pay tax on a buy to let?

Yes, the income you receive as rent is taxable ...

You need to declare any rent you receive as part of your Self Assessment tax return. The tax on your income is then charged in accordance with your income tax banding (20% for basic rate taxpayers, 40% for higher rate, and 45% for additional rate).

How much profit should you make on a rental property?

You should be aiming to achieve a rental yield of around 7%, or more.

Self-build FAQs

How do self-build mortgages differ from standard ones?

A self-build mortgage is a loan taken out to fund the cost of building a new home for yourself to live in. This type of mortgage differs from a standard residential mortgage because you receive the funds in stages as you complete pre-agreed parts of the build rather than receiving one lump sum payment. This reduces the risk to the lender, ensuring that the funds are spent as intended, and you do not run out of funds part way through the project.

The staged payments can vary, depending on the nature of the build and the lender providing the funds. Typically, the first payment will be made when you purchase the land (if you don’t already own it). The second payment is made when the foundations are laid, and then a further payment provided when the build is eaves level.

Further stage payments are usually made when the roof is watertight, and when the interior walls are plastered, with the final stage payment being made on completion.

What are the advantages of a self-build mortgage ?

A big advantage of a self-build mortgage is the potential saving you will make on stamp duty.

This saving is due to the fact that stamp duty is not levied on the cost of the building work or the value of the completed property. You will only be required to pay stamp duty on the value of the land, and then only provided the land cost is greater than £125,000. Those who do self-builds often benefit from the final value of the completed property being much greater than the cost of the land, materials, and labour combined.

What types of self-build mortgages are available ?

There are generally two types of self-build mortgage, as follows:

Paid in arrears: This is by far the more common type of self-build mortgage, where payments are made after each stage of the project is finished. This type is better for those self-builders that have cash reserves at hand.

Paid in advance: With this type, payments are made at the beginning of each stage, ensuring that funds are available to pay bills for materials and labour when they are due. This type aids cash flow and is more suitable for people who have less funds of their own available.

What information is needed

It is important to be prepared when approaching a self-build project, and have all the necessary information ready …

Compared to a normal residential mortgage a self-build mortgage commonly involves more paperwork which will include detailed plans of the property. Further to this a projection of all the projects costs will be required at the outset, which will usually be accompanied by a schedule of works outlining the proposed time frame for your build.

In most cases evidence of planning permission having been granted will also be required. Depending on the detail of the project you will usually be required to provide a deposit of at least 25% of the overall project value.

Supporting documentation you will need to provide usually includes:

Project costings & schedule of works
Planning permission documentation
Architects drawings and specifications
Building regulations approval
Site insurance and structural warranty documents
Confirmation of architect’s professional indemnity insurance

Most people will pay the self-build mortgage off with a standard residential mortgage when the project is complete, and you will also be required to evidence that you can obtain this.

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General FAQs

How much can I borrow ?

The amount you can borrow is dependent on your particular circumstances, plus the amount of equity you have and the deposit you have available.

You can speak to one of our in-house advisers who will be able to assess your circumstances and advise you on how much you can borrow given your current situation. This service is completely free, there is no credit check required at this point, and you are under no obligation.

How do lenders assess borrowers ?

There are generally no checks performed in order to obtain indicative mortgage quote, however lenders will always perform a risk assessment on a borrower when a full mortgage application is made

Risk assessments are done both to ensure that the lenders risk is minimised, and so that the borrower does not suffer any financial hardship as a result of the borrowing. In doing so the lender will consider a number of factors in assessing risk.

A lender will undertake an affordability assessment of the borrower by looking at their income(s), and their outgoings to ensure that the borrowing is affordable. Once this assessment has been done, the lender can determine what level of monthly mortgage repayments the borrower can afford.

Ultimately once a full mortgage application is submitted, lenders will also do a credit check on a borrower, usually with a credit reference agency. This will help them determine the reliability of the borrower to repay the mortgage on time. Your credit score is influenced by your previous borrowings, your types of borrowing, e.g. credit cards or payday loans, and how often you have defaulted, etc.

The Financial Conduct Authority (FCA) has made it compulsory for lenders to carry out stress tests on borrowers applying for a mortgage. This requires the lender to assess and predict the effects on a borrower of some kind of ‘financial emergency’, to ensure that the borrower can weather the storm and recover without ending up in a precarious financial situation.

How much deposit will I need ?

Your deposit is the amount of money you’ve saved up to put towards your first home and it will help determine how much you then need to borrow as a mortgage.

The more money you’ve saved as a deposit, the less you’ll need to borrow from the bank. And if you have a bigger deposit, you’ll have access to more competitive mortgage rates. As well as saving for your initial deposit, you’ll also need funds to put towards fees like property searches, surveys, mortgage arrangement fees, solicitor’s fees, stamp duty, home insurance, removal costs and so on.

What type of mortgages are there ?

There are a number of different types of mortgage available as follows:

Repayment mortgages - With a repayment mortgage your mortgage payments will consist of part interest and part capital repayment. At the end of the mortgage term (commonly 25 years) you would normally have paid the mortgage off completely, and at that point own your home entirely.

Interest only mortgages - With an interest only mortgage your monthly mortgage payments only cover the interest portion of the loan, and no repayment of the principle capital is required. However, at the end of the loan term the principle amount will remain outstanding. While interest only mortgages allow you to make lower monthly payments, you will still have to demonstrate that you have feasible plan to pay off the capital remaining owed.

Variable mortgages - Variable rate mortgages could be fully variable where the lender sets the rate and can change it at any time. They may also be tracker mortgages, which are set to Bank of England base rate plus or minus a particular percentage. There are also other types of variable rate mortgage available including capped and collared mortgages which can have upper and lower rate limits. With any type of variable rate mortgage your monthly payments could go up as or down as interest rates change.

Fixed rate mortgage - With fixed rate mortgages, as you’d expect, the interest rate and your monthly repayments are fixed certain percentage for an agreed length of time. These are commonly fixed to 2,3, or 5 year deals, but there are also some 10 year fixed rate mortgages are available. At the end of the fixed term, your mortgage will usually be switched to the banks standard variable rate (SVR), and this is when most people remortgage their property.

What information will I need to provide ?

The earlier you can provide the required documentation, the quicker and easier your application will be ...

The information you will need to provide for a full mortgage application is gernerally the same for most mainstream lenders. Many mainstream lenders still won’t accept bank statements printed from the internet, so you may need to request paper copies from your bank. Most lenders will request the following documents:

  • Your last 3 months bank statements
  • Your last 3 months pay slips
  • Your last 3 years accounts/tax returns (self-employed)
  • Proof of bonuses/commission
  • Your latest P60 tax formID documents (usually a passport)
  • Proof of address (eg. utility bills or credit card bills)

It is best to have these available a few weeks in advance just in case you have to wait for HMRC to send original documentation to you when required.

When will I need a solicitor to be involved ?

It will be beneficial for you to have an Agreement in Principle and solicitors lined up before you start viewing properties to buy. This is because as a qualified buyer you are in a more serious position to proceed to with a purchase compared with the other large number of speculative offers they receive from non-qualified buyers.

Your solicitor will liaise with the mortgage company and the vendor’s solicitor in order to conduct the necessary searches and surveys, and will ensure that all the legal requirements of the process are completed.

Other considerations for successful applications

Making sure you get your application accepted ...

In addition to the ‘financials’, there are a number of other factors a lender will consider when approving a mortgage application. To ensure your success, as a self-employed individual you should consider:

  • Consult a mortgage broker - Different lenders have different criteria, and using a broker will make sure you don’t waste time applying with unsuitable lenders, and rather only make applications with the right lender(s) first time.
  • Check your credit score - Make sure there are no adverse entries on your credit file. If there are, it doesn’t necessarily mean you can’t qualify as some lender’s criteria is stricter than others.
  • Ensure that you are on the electoral role - If you are unsure check with your local council. This is an important factor when it comes to your credit rating.
  • Get your accounts up to date - These types of loan can adversely affect your credit rating because lenders view these type of borrower as being in financial difficulty. Many lenders will decline applications where there has been recent activity with payday lenders
  • Avoid payday loans - These types of loan can adversely affect your credit rating because lenders view these type of borrower as being in financial difficulty. Many lenders will decline applications where there has been recent activity with payday lenders
  • Sort out your deposit early on - Be prepared early and have the funds readily available as soon as you can.
  • Don’t max out your credit - Avoid using your full credit limit on credit cards. Also look to avoid making only the minimum payments, because this means that the actual debt is never being paid off and lender’s will consider this a negative.
  • Keep credit checks to a minimum - When using comparison websites for financial products such as insurance they will carry out multiple credit checks. Too many of these over a short period of time can have a detrimental effect on your credit rating.

It is best to have these available a few weeks in advance just in case you have to wait for HMRC to send original documentation to you when required.

First-time-buyer FAQs

What defines a first-time buyer ?

A first-time buyer is classified as such when they purchase their main or only residence, and have never yet owned a freehold or leasehold residential property either in the UK or abroad.

How much deposit will I need ?

You will need to save a deposit before looking to purchase a property. In most cases you’ll need to save at a minimum deposit of between 5-20% of the value of the property. So for example, if you wanted to purchase a property for £200,000 you’d need to have at least £10,000 available as a deposit. The more deposit you have the greater will be the range of available mortgages. Also with larger deposits you will be able to obtain more competitive interest rates.

How much stamp duty do I pay?

As a first-time buyer you will not be required to pay any stamp duty on the first £300,000 on any property costing up to £500,000. You will then pay 5% on the value between £300,001 and £500,000. For properties being purchased over £500,000 you will be required to pay stamp duty on the same scale as someone who has purchased a property previously:

0% rate for the first £125,000
2% rate for £125,001 to £250,000
5% rate for £250,001 to £925,000
10% rate for £925,001 to £1,500,000
12% rate for £1,500,001 and upwards

What fees are payable ?

It is important to review all the costs associated with a mortgage as well as the interest rate …

Most remortgages will have fees and costs attached, including arrangement fees, legal costs, and valuation fees, and some also carry repayment charges or redemption penalties. You will generally need to pay:

1. Valuation fees (some lenders can offer this free as part of a remortgage deal)
2. Administration charge
3. Solicitors legal fees
4. Exit fees (sometimes payable if your existing mortgage has not come to the end of its term yet)

Some lenders can provide free valuations, as a way of securing more business, but others will require a new valuation report do be carried out which will incur a fee. To ensure you have considered all the costs properly, it is helpful to check the APR, as this provides the annual percentage rate which includes the full costs. This is helpful, especially when comparing different providers deals.

Can I get help buying my first home ?

A Government-backed scheme called ‘Help-to-Buy’ is available offering assistance for those looking to get on the property ladder for the first time. There are a number of lenders who participate in this scheme which we can help match you with

Remortgage FAQs

How can a remortgage help me ?

Many people seek to free up spare cash by reducing their monthly mortgage payments with a remortgage. Others can look to obtain a fixed rate to avoid inflation in the future. Alternatively, others may wish to pay off their mortgage quicker, or raise capital to invest in their home.

Can I remortgage to consolidate debts ?

Yes, you can lump all of your outstanding debts into a single more manageable monthly payment which reduces your monthly financial pressure. This will help you to keep up with your repayments, and avoid any penalty charges incurred by late payments. Alternatively, if you release cash by remortgaging, that cash can be used to clear debts altogether.

Which Remortgage deal is best for me ?

Individual circumstances are usually different for different people, so therefore each mortgage product will be different in order to reflect individual needs. Remortgage deals are tailored to each individual’s particular needs, their home, and their financial situation. It is therefore always best to obtain expert financial advice from a qualified adviser before making any changes.

What fees are payable for remortgaging ?

When remortgaging your home there is usually an arrangement fee for the new mortgage. Fees payable vary from lender to lender. You may also need to pay:

1. Valuation fees (some lenders can offer this free as part of a remortgage deal)
2. Administration charge
3. Solicitors legal fees
4. Exit fees (sometimes payable if your existing mortgage has not come to the end of its term yet)

Remember to account for these costs when you are working out how much you will save when remortgaging.

Moving house FAQs

How do lenders assess borrowers ?

There are generally no checks performed in order to obtain indicative mortgage quote, however lenders will always perform a risk assessment on a borrower when a full mortgage application is made

Risk assessments are done both to ensure that the lenders risk is minimised, and so that the borrower does not suffer any financial hardship as a result of the borrowing. In doing so the lender will consider a number of factors in assessing risk.

A lender will undertake an affordability assessment of the borrower by looking at their income(s), and their outgoings to ensure that the borrowing is affordable. Once this assessment has been done, the lender can determine what level of monthly mortgage repayments the borrower can afford.

Ultimately once a full mortgage application is submitted, lenders will also do a credit check on a borrower, usually with a credit reference agency. This will help them determine the reliability of the borrower to repay the mortgage on time. Your credit score is influenced by your previous borrowings, your types of borrowing, e.g. credit cards or payday loans, and how often you have defaulted, etc.

The Financial Conduct Authority (FCA) has made it compulsory for lenders to carry out stress tests on borrowers applying for a mortgage. This requires the lender to assess and predict the effects on a borrower of some kind of ‘financial emergency’, to ensure that the borrower can weather the storm and recover without ending up in a precarious financial situation.

How much deposit will I need ?

Your deposit is the amount of money you’ve saved up to put towards your first home and it will help determine how much you then need to borrow as a mortgage.

The more money you’ve saved as a deposit, the less you’ll need to borrow from the bank. And if you have a bigger deposit, you’ll have access to more competitive mortgage rates. As well as saving for your initial deposit, you’ll also need funds to put towards fees like property searches, surveys, mortgage arrangement fees, solicitor’s fees, stamp duty, home insurance, removal costs and so on.

What type of mortgages are there ?

There are a number of different types of mortgage available as follows:

Repayment mortgages - With a repayment mortgage your mortgage payments will consist of part interest and part capital repayment. At the end of the mortgage term (commonly 25 years) you would normally have paid the mortgage off completely, and at that point own your home entirely.

Interest only mortgages - With an interest only mortgage your monthly mortgage payments only cover the interest portion of the loan, and no repayment of the principle capital is required. However, at the end of the loan term the principle amount will remain outstanding. While interest only mortgages allow you to make lower monthly payments, you will still have to demonstrate that you have feasible plan to pay off the capital remaining owed.

Variable mortgages - Variable rate mortgages could be fully variable where the lender sets the rate and can change it at any time. They may also be tracker mortgages, which are set to Bank of England base rate plus or minus a particular percentage. There are also other types of variable rate mortgage available including capped and collared mortgages which can have upper and lower rate limits. With any type of variable rate mortgage your monthly payments could go up as or down as interest rates change.

Fixed rate mortgage - With fixed rate mortgages, as you’d expect, the interest rate and your monthly repayments are fixed certain percentage for an agreed length of time. These are commonly fixed to 2,3, or 5 year deals, but there are also some 10 year fixed rate mortgages are available. At the end of the fixed term, your mortgage will usually be switched to the banks standard variable rate (SVR), and this is when most people remortgage their property.

What information will I need to provide ?

The earlier you can provide the required documentation, the quicker and easier your application will be ...

The information you will need to provide for a full mortgage application is gernerally the same for most mainstream lenders. Many mainstream lenders still won’t accept bank statements printed from the internet, so you may need to request paper copies from your bank. Most lenders will request the following documents:

  • Your last 3 months bank statements
  • Your last 3 months pay slips
  • Your last 3 years accounts/tax returns (self-employed)
  • Proof of bonuses/commission
  • Your latest P60 tax formID documents (usually a passport)
  • Proof of address (eg. utility bills or credit card bills)

It is best to have these available a few weeks in advance just in case you have to wait for HMRC to send original documentation to you when required.

What fees are payable ?

It is important to review all the costs associated with a mortgage as well as the interest rate

Most remortgages will have fees and costs attached, including arrangement fees, legal costs, and valuation fees, and some also carry repayment charges or redemption penalties. You will generally need to pay:

1. Valuation fees (some lenders can offer this free as part of a remortgage deal)
2. Administration charge
3. Solicitors legal fees
4. Exit fees (sometimes payable if your existing mortgage has not come to the end of its term yet)

Some lenders can provide free valuations, as a way of securing more business, but others will require a new valuation report do be carried out which will incur a fee. To ensure you have considered all the costs properly, it is helpful to check the APR, as this provides the annual percentage rate which includes the full costs. This is helpful, especially when comparing different providers deals.

When will I need a solicitor to be involved ?

It will be beneficial for you to have an Agreement in Principle and solicitors lined up before you start viewing properties to buy. This is because as a qualified buyer you are in a more serious position to proceed to with a purchase compared with the other large number of speculative offers they receive from non-qualified buyers.

Your solicitor will liaise with the mortgage company and the vendor’s solicitor in order to conduct the necessary searches and surveys, and will ensure that all the legal requirements of the process are completed.

Lifetime mortgages FAQs

How do I receive the money?

You can choose to receive the money as a one-off lump sum tax free, as a number of regular withdrawals, or as a regular monthly income.

How you choose to receive the funds will be dependent on your circumstances and how you wish to use the funds. So for example, if you want to help a family member get on the property ladder with their first deposit a lump sum withdrawal would be required. However, if you wish to supplement your retirement income, then drawing a regular monthly income may be preferential.

It is important to remember that releasing equity will reduce the amount of inheritance you can pass on, and may also affect your tax position and your welfare benefits eligibility. For this reason, it is prudent to speak with a qualified advisor. Needless to say, Advice Wise hold all the necessary qualifications and authorisations to offer this advice.

Do lifetime mortgages differ to equity release?

Although a lifetime mortgage is a form of equity release, the difference between them is that with a lifetime mortgage you retain full ownership of your home.

With the old equity release (home reversion plans) you actually sell a share of your home in return for the cash you release. The amount you receive with a home reversion plan is usually below the current market value. The other main difference is that with lifetime mortgages the interest builds up compounding over the years of the mortgage. Because home reversion plans are not loans there is no interest.

Are lifetime mortgages regulated by the FCA?

Yes, lifetime mortgages are regulated by the Financial Conduct Authority.

Advice Wise is authorised by the FCA and holds the a Certificate in Regulated Equity Release (LIBF) / CeRER enabling us to provide clients with independent and impartial advice on lifetime mortgages.

How do interest and repayments work?

You are not required to make any monthly payments with a lifetime mortgage.

The interest will build up year on year, and the loan capital and interest are both paid off from the sale of your home. The loan is paid off when you pass away, go into long-term care, or choose to redeem the loan for another reason.

Can I guarantee an inheritance?

Yes, an inheritance guarantee is offered by some providers which can ensure that you leave a certain percentage of your home to your next of kin. This can however reduce the amount of equity you can release.

How long does it take?

Lifetime mortgages on average take 6-10 weeks from the point of application to the receipt of funds. Our advisers can help make sure that your application is successful and is completed within the necessary timeframe.

Are lifetime mortgages safe?

All types of equity release products including lifetime mortgages are regulated by the Financial Conduct Authority (FCA).

Stringent rules are imposed by the FCA on financial advisers and the lenders who provide these products. Financial advisers who provide specialist advice on lifetime mortgages must hold the appropriate FCA authorisation in addition to the necessary professional qualification. Advice Wise Ltd is authorised and regulated by the FCA, and we also hold a Certificate in Regulated Equity Release (LIBF) / CeRER.

Can I sell or move home?

Yes, you can sell your home. Unlike other forms of equity release such as home reversion plans, with lifetime mortgages you retain full ownership of your home. Therefore, you are free to sell your home as you wish at any time. Naturally the lifetime mortgage (like most others) will need to be redeemed once you sell your property.

Are there affordability checks?

No, lender’s affordability checks are not necessary for lifetime mortgages, however your financial adviser will look into your income and expenditure to ensure that they are providing you with the best advice on the mort suitable product for your circumstances.

Will it reduce my Inheritance tax liability?

Perhaps, a lifetime mortgage could affect the amount of inheritance tax your estate will have to pay. Our financial advisers are qualified to provide guidance and recommendations with regard to this matter.

Does a lifetime mortgage affect my benefits?

Yes, funds released from a lifetime mortgage can affect any means-tested benefits that you receive such as pension credits or council tax credits etc. Other benefits which are not impacted include your state pension and any benefits regarding disability and health. It is important to discuss these with your financial adviser when looking at a lifetime mortgage.

Can I repay a lifetime mortgage early?

Yes, with most lifetime mortgages you can usually repay the loan in full, but with some you may incur early repayment charges. This differs between providers and products so it is important to check these with your financial adviser. Other factors which impact this also include the amount of time you have held the lifetime mortgage and the precise reason for wishing to pay it off.

Who are the Equity Release Council?

The Equity Release Council (ERC) is an independent organisation created to promote and support the providers of these products. The ERC’s strict rules and principles provide a framework for providers to adhere to in order to safeguard consumers who use these products.

Do I need professional advice?

Yes, you will need professional advice from a suitably qualified adviser within an FCA authorised firm

Lifetime mortgages have become more popular in recent years with many people considering them as part of their retirement planning. It is very important however to engage an appropriately authorised and qualified financial adviser to ensure that you understand how a lifetime mortgage works and all its terms and conditions. It is important to realise that it will have an impact on any inheritance you leave as well as your rights to certain benefits.

Due to this, it is a regulatory requirement to speak with an appropriate financial adviser prior to taking on a lifetime mortgage. Our financial advisers have the necessary authorisation, qualifications, and experience to consider your circumstances, and your needs and preferences in order to ensure that you get the most suitable solution.

How do I know if my adviser is qualified?

Our professional in-house advisers are qualified to provide advice on lifetime mortgages and hold the Certificate in Regulated Equity Release (LIBF) / CeRER necessary to provide such specialist advice.

Buy-to-let FAQs

How are BTL mortgages different to standard mortgages?

You cannot live in the property yourself if you have a buy-to-let mortgage, so if this is your aim you should get a standard residential mortgage instead. There are some basic differences between a standard mortgage and a buy-to-let mortgage that can potentially make getting a buy-to-let mortgage more challenging.

Mortgage lenders tend to view buy-to-let mortgages as having a higher risk than standard residential mortgages. This is because landlords can sometimes experience problems with collecting rents, and vacant periods where there is no tenant in place and hence no rental income.

Due to the higher risk involved for lenders, landlords are usually required to pay a larger deposit for a buy-to-let mortgage. The minimum deposit required is usually around 25% (of the property value), although this does vary between lenders and precise type of mortgage. There have been some deals available with a 20% mortgage, but with higher rates. The best buy-to-let mortgage deals tend to require a higher deposit which can be as high as 40%. Arrangement fees also tend to be higher than those applied to standard residential mortgages.

The majority of buy-to-let mortgages are interest only as opposed to capital and interest mortgages which tend to predominant with standard mortgages. So landlords only tend to service the loan by paying only the interest and not making any capital repayments. This usually means that the monthly payments are lower, however, the mortgage remains outstanding at the end of its period. Landlords will then either re-finance the mortgage, sell the property to repay the loan and take profit from the increased value, or pay off the mortgage with accrued savings they’ve made over time.

How much can I borrow on a Buy-to-let?

The amount you are able to borrow on a buy-to-let mortgage will depend on how much rent you can receive from your tenants. Lenders usually require you to receive at least 125% of your monthly mortgage interest payments, but many can require up to 140%

It is fairly straightforward to estimate how much rent you can achieve from your property by looking at similar properties in the area. However, a lender will normally require verification of the rental value from a professional surveyor. The corollary is that the more you charge in rent, the more you can borrow.

Just like standard mortgages, a buy-to-let mortgage has a loan-to-value (LTV) ratio. This is calculated by the size of your mortgage as a percentage of the property’s value. For example, if your property is valued at £150,000 and your mortgage is £120,000, then your LTV will be 80%.

Who can get a BTL mortgage?

Before applying for a buy-to-let mortgage there are certain that, as a borrower you must meet so as to be eligible ...

First you need to already own a home yourself, with or without a residential mortgage. The lender will then assess your financial circumstances in much the same as they do for standard residential mortgages. It will be easier for you to obtain a good deal if you have a healthy credit rating and don’t have large debts such as credit cards, or other loans. A lender will also assess your income, with many requiring a landlord to have an annual income of at least £25,000.

The majority of lenders also set upper age limits, usually 70-75 years old (at the end of the mortgage term). Because most mortgages tend to be 25 years, you would normally have to be around 45-50 years old, or younger. There are some lenders that have higher age limits, sometimes as high as 90 years old..

What happens at the end of a BTL mortgage term?

When your interest-only mortgage comes to the end of its term you will need to pay off the outstanding capital element. Mostly this is achieved by selling the property, the point at which landlords make the majority of their profit. However, in some situations, particularly if the value of the property has fallen then a loss can be incurred.

Can a standard pension move to a SIPP?

There is a vast array of providers, each with a choice of different mortgage types. Sorting through these to find the best deal can be arduous and sometimes confusing ...

Our advisers are plugged into all the latest deals from every lender in the market. With some very basic information, we can match you to the best deal available for your circumstances very quickly, and usually obtain an indicative offer in a few minutes.

By using a specialist broker / adviser like ourselves you are assured of obtaining the best deal available in the market at the current time.

Do I pay tax on a buy to let?

Yes, the income you receive as rent is taxable ...

You need to declare any rent you receive as part of your Self Assessment tax return. The tax on your income is then charged in accordance with your income tax banding (20% for basic rate taxpayers, 40% for higher rate, and 45% for additional rate).

How much profit should you make on a rental property?

You should be aiming to achieve a rental yield of around 7%, or more.

Self-build FAQs

How do self-build mortgages differ from standard ones?

A self-build mortgage is a loan taken out to fund the cost of building a new home for yourself to live in. This type of mortgage differs from a standard residential mortgage because you receive the funds in stages as you complete pre-agreed parts of the build rather than receiving one lump sum payment. This reduces the risk to the lender, ensuring that the funds are spent as intended, and you do not run out of funds part way through the project.

The staged payments can vary, depending on the nature of the build and the lender providing the funds. Typically, the first payment will be made when you purchase the land (if you don’t already own it). The second payment is made when the foundations are laid, and then a further payment provided when the build is eaves level.

Further stage payments are usually made when the roof is watertight, and when the interior walls are plastered, with the final stage payment being made on completion.

What are the advantages of a self-build mortgage ?

A big advantage of a self-build mortgage is the potential saving you will make on stamp duty.

This saving is due to the fact that stamp duty is not levied on the cost of the building work or the value of the completed property. You will only be required to pay stamp duty on the value of the land, and then only provided the land cost is greater than £125,000. Those who do self-builds often benefit from the final value of the completed property being much greater than the cost of the land, materials, and labour combined.

What types of self-build mortgages are available ?

There are generally two types of self-build mortgage, as follows:

Paid in arrears: This is by far the more common type of self-build mortgage, where payments are made after each stage of the project is finished. This type is better for those self-builders that have cash reserves at hand.

Paid in advance: With this type, payments are made at the beginning of each stage, ensuring that funds are available to pay bills for materials and labour when they are due. This type aids cash flow and is more suitable for people who have less funds of their own available.

What information is needed

It is important to be prepared when approaching a self-build project, and have all the necessary information ready …

Compared to a normal residential mortgage a self-build mortgage commonly involves more paperwork which will include detailed plans of the property. Further to this a projection of all the projects costs will be required at the outset, which will usually be accompanied by a schedule of works outlining the proposed time frame for your build.

In most cases evidence of planning permission having been granted will also be required. Depending on the detail of the project you will usually be required to provide a deposit of at least 25% of the overall project value.

Supporting documentation you will need to provide usually includes:

Project costings & schedule of works
Planning permission documentation
Architects drawings and specifications
Building regulations approval
Site insurance and structural warranty documents
Confirmation of architect’s professional indemnity insurance

Most people will pay the self-build mortgage off with a standard residential mortgage when the project is complete, and you will also be required to evidence that you can obtain this.

Getting the right advice ...

If you are considering a mortgage, it is wise to take financial advice from an independent & impartial financial adviser

Rest assured, we are authorised by the FCA, and also have the necessary qualifications to provide independent & impartial advice on all types of mortgage, acting in the best interests of our clients at all times!


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