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UK Mortgage Help FAQ
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Mortgage Fox Telephonist

If you want to ask a question click here to contact us

Frequently Asked Questions


What does APR mean?

APR stands for "Annual Percentage Rate".
It is an expression of the interest rate that a borrower will pay on a loan, taking into account one-time fees, and standardizing the way the rate is expressed.

In other words APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted.

APR is intended to make it easier to compare the cost of mortgages, loans and credit cards on a like for like basis. The APR will usually include the interest rate on the loan together with any charges for setting up the mortgage.


Do I have to have life insurance to become eligible for a mortgage?

In simple - no. But Mortgage lenders will encourage all borrowers to take out life insurance. It's only necessary though if you have a partner or children. If you're young, free and single, noone else stands to loose if you die. The worst that could happen is your mortgage lender will sell your house to pay off your home loan.


How much can I borrow?

There are many facotrs to consider, but a simple way to work it out is to deduct payments to any credit commitments from your salary then, multiply by 4 for a single income or 3 for a joint income (approximate figures). Your credit status will increase or reduce this multiple.

You can use our mortgage calculator to work this out for you and see what your monthly payments will be for both captial repayment, and interest free mortgages.


Is there a usually charge for paying my mortgage off early?

In general, yes. Lenders usually charge a deed release fee which can vary from 25 to over 200 if you want to pay off your mortgage either to become mortgage free or to move to a different lender. Additionally, if you are taking advantage of a special interest rate (for example a fixed rate) there is usually a penalty payable if your redeem the mortgage before the end of the fixed rate period. The fee will vary from lender to lender so it is important to seek further information.


Am I too old to apply for a mortgage?

The maximum age to take out a mortgage varies from lender to lender. A lender will need to know that you can afford your mortgage repayments and therefore if you take out a mortgage that will take you into retirement they need confirmation that you will have sufficient income in retirement to continue paying your monthly repayments. Please fill in our Free Mortgage Quote Form and use the box on page 3 if you would like us to ask an independant mortgage advisor to get in touch to help and advise you further.


I currently save with an ISA - should I keep it or put the money into my mortgage?

It is recommended that between 2 to 3 months salary is kept in an easily accessible account in case of emergency. A Cash Mini Individual Savings Account (ISA) is very useful for this, as it currently allows you to save up to £3000 in each tax year without any tax liability.


Can I borrow more than the cost of my property?

All lenders have different lending criteria. Depending on the lender you go with you can potentially borrow up to 130% of the value of your property. Please click here to get a Free Mortgage Quote and we will find out which lenders will offer you the mortgage you require for you.


Who offers the cheapest mortgage?

The best deal for you will depend on your individual requirements, the type of mortgage scheme you prefer (eg - fixed, variable, cashback etc), the length of any special rates (e.g. fixed for 4 years), whether you go for a low rate with fees or a higher rate with no fees, redemption penalties, tie in period or not, plus many other factors.

Please look at our Best Buy Mortgage Tables to see the latest deals and help you determine the right lender for you.


I have been made bankrupt - can I still take out a mortgage?

People with adverse credit can still apply for a mortgage, and many lenders will now consider a mortgage even after bankruptcy or an IVA. Every case is judged on its individual merits, including the customer's ability to keep up repayments and his/her existing liabilities. Specific criteria and conditions will be added depending on the individual.

We specialise in arranging mortgages for those with bad credit. Please fill out our Mortgage Quote Form, and tell us about your circumstances


Do I have to take out insurance with the same people that I get my mortgage with?

All lenders require that you have building insurance in place, although most do not insist that you have insurance with the same company as the mortgage. If you do not take the insurance offered by your mortgage provider though, some will charge an administration fee (in the region of 25).


Is interest only or a repayment mortgage best?

A repayment mortgage guarantees to repay your mortgage, an interest only mortgage does not. Some lenders insist on a repayment 'vehicle' for an interest only mortgage - the interest plus the cost of the repayment vehicle will be no cheaper than a repayment mortgage. You might be able to pay off your mortgage early using a repayment vehicle but then again it might take longer - there is no guarantee. How much risk are you prepared to take? Do you understand the risks?

The answer depends on your own individual circumstances. If you would like some free advise on your own personal situation then please use our Mortgage Advice Form to get a free quote online, and have an independant advisor answer any questions you may have.


As a Scottish customer are there any differences in the mortgage process?

Buying a home in Scotland follows different rules. For a start, solicitors can act as estate agents and properties are sold by bidding on an offers-over or fixed-price basis. Unlike the system south of the border, buyers tend to offer over the asking price rather than below it and bids are made in secret. As a buyer you ask your solicitor to register your interest with the seller of a property who will then notify you of the closing date for bids. Potential buyers have their survey done before they make an offer and once an offer has been accepted it is a binding agreement (called conclusion of missives).


If you or the seller backs out after that then compensation becomes due. As a result there's very little gazumping in Scotland once an offer has been accepted. Searches and enquiries are carried out using a central system of property registration, instead of via local authorities, so the process is much quicker. No money is handed over until the final settlement day so no deposit is required. As a Scottish buyer your may be restricted on choice of lenders.


The property I want to buy is lease hold - does this change my mortgage options?

Leasehold property will not affect the type of mortgage that you can apply for. Properties with short leasesthough may be a problem as lenders will require that the lease should run for at least the term of mortgage (ie over 20 years).


I am having trouble with my payments - what should I do?

Speak to your lender as soon as possible. It is in their interest as well as yours to ensure that you do not get behind with your payments. If you explain your situation to your lender they will explore your options and find a way that is amicable for both of you.