FAQ
Do I need a deposit for a mortgage?
Not necessarily, as some mortgage companies try to be as helpful as they can particularly to first time buyers. Generally speaking however, it does make life easier if you can find a deposit and the more you can put down the better, as you will be able to enjoy a cheaper and better interest rate.To whom will most lenders give mortgages?
You must be over 18 to have a mortgage and most lenders generally recommend the mortgage term does not extend beyond your retirement age. You will not be discriminated against because of your color, race, ethnic or national origin, your sex or if you are disabled. However, you will need to have the right to reside and work in USA for at least the duration of the mortgage.Up to four people can be joined in an application. At least one applicant is required to have an acceptable form of income and all should have a good credit history. Your application will be subject to a credit check and you will need to prove your income.
How long can the term of the mortgage be?
The usual term is 25 years but your loan can be for any term from five to 30 years. It should ideally end on or before your normal retirement age.Higher Lending Charges...
Some Mortgage Refinancing Lenders charge a one off insurance premium, known as the higher lending charge, to cover themselves in any case of high risk lending, which is generally (but not always) defined as lending above 90% of the property value. This insurance does not benefit the borrower in any way, but covers the lender if, in the event of repossession, there is a shortfall in repayment of the outstanding debt. Were this situation to arise, the insurance company that provided the policy will often pursue the borrower for the equivalent of the money claimed by the lender.
The one off premium is usually added to the loan, rather than being paid upfront at the outset, and the borrower will therefore also be paying interest on this additional borrowing for the life of the mortgage, unless it is paid off with a lump sum or regular overpayments.
More and more deals are now being offered without an early repayment charge; in our experience many people (particularly first time buyers) are needlessly paying it. Occasionally, however, a situation could arise where the advantages of a particular deal outweigh the disadvantage of having to pay the premium. In this case we would clearly include the fee, along with all other fees, in our illustrations, and its significance would be explained to you in full at the outset.
What is the valuation?
The Mortgage Valuation is solely for the purposes of a Mortgage Refinancing Lender to satisfy itself property provides sufficient security for Mortgage Company to lend on it. The Mortgage Valuation does not give any indication whether the property is worth what you are paying, nor does it provide a comprehensive list of any repairs required.What is a valuation fee?
Mortgage Refinancing Lenders need expert guidance on what the property in question is worth as security for them to lend on it. They instruct a value to assess the property for this purpose.Portable mortgages...
If you decide to move home it is important to know from the outset whether you have early repayment charges as Mortgage Refinancing Lenders will only charge penalties if you change Mortgage Refinancing Lender, or reduce the loan size, and not (with portable mortgages) if you are actually moving to a new home. This can be an important factor to take into consideration if, for example, you are considering whether or not to go for a long term fixed rate: you may not be sure whether you wish to move or not during the initial fixed period, but as long as you have a portable mortgage you will be keeping this option open.
Portability can still be an advantage even when your mortgage product has no redemption penalties at all. For example, you could have secured a particularly favorable mortgage refinancing deal originally and the market could subsequently have changed, leaving no comparable Mortgage refinancing deals: it would obviously make sense in this situation to keep the product that you have, rather than switching when you move house.
