Mortgage Broker Frequently Asked Questions
What is a mortgage?
A mortgage is the loan you take out to cover the cost of a property. The mortgage is secured against your property which means the mortgage lender can take possession of your property if your mortgage payments are not made.
The mortgage lender will also charge interest on the amount you borrow in return for lending you the money. You need to repay the mortgage amount and any interest that has accrued to back to the mortgage lender before the end of the mortgage term and in the increments you have agreed. This is normally a fixed amount each month.
There are a large amount of different types of lenders who will provide mortgages, the most common are banks and building societies.
What is a Mortgage Broker
A mortgage broker is a person (or team of people) whose job it is to understand the mortgage market, so they can give advice to their clients. The team at Rosebank Mortgage Brokers are experts in their field and take the time to understand their clients financial position so they can find the best deals to suit their personal circumstances.
Why use a Mortgage Broker
If you are looking for a mortgage you can go direct to a lender and arrange a mortgage with them yourself. This approach however has two main drawbacks, that the lender will only show you their range of mortgage products, so you will not know if there is a better or cheaper deal from another lender, and second, that you will have to liaise and discuss with the lender yourself which is time consuming and can be complicated. When you use a mortgage broker they can make sense of the jargon and ensure you see all of the options available to you before you make a decision.
How much can I borrow?
Each lender has their own criteria for how much they will lend. The actual amount you’re eligible to borrow will be determined by a combination of the cost of the property you want to purchase and the amount you can put down as a deposit. Lenders also want to know how much you can afford to repay on a monthly basis and so to decide how much to lend then look at your current finances and any future commitments. Online mortgage calculators can be over simplified so to get the best advice on how much you will be likely able to borrow talk to the team at Rosebank today.
What is a remortgage?
A Remortgage is simply the term for changing the mortgage you have on your current property from one lender to another. This happens frequently as mortgage deals end, homeowners want look for the best deals available and switching to another lender can save you a lot of money. Remortgaging can be useful if your circumstances have changed since your last mortgage and you want to borrow more, or less.
What is conveyancing?
Conveyancing refers to the legal work completed by the solicitor or conveyancer you choose when buying or selling a property.
I have had problems with credit in the past, can I get a mortgage?
Past credit problems should not exclude you from getting a mortgage, but it may reduce the amount of options you have when looking for a deal. The team at Rosebank will look at your financial information and discuss your credit report before finding a deal that will suit your needs.
What is an Early Repayment Charge?
When you take out a mortgage with an initial deal on an e.g. fixed, tracker or discounted rate basis, should you repay the mortgage in full or part before the deal ends, you usually will have to pay an Early Repayment Charge.
Do I need insurances with my Mortgage?
Often buildings insurance is a condition of the mortgage, contents insurance is also recommended is as life insurance. When taking out any large debt insurance against the unexpected should be included, the team at Rosebank Mortgage Brokers can also advise on life insurance products.
I have had problems with credit in the past, can I get a mortgage?
We have a comprehensive range of products from across the market; this includes products to help people that may have had issues with credit in the past.