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Frequently Asked Questions
Residential Mortgages:
What is the maximum I can borrow?
Residential mortgage amounts can vary from as little as £25,000 to £100 Million. The amount you can borrow will depend on a variety of factors, such as:
1
Your annual income
2
How many credit commitments you have
3
How strong your credit score is
4
How many dependants you have
5
How close to retirement age you are
These examples are just some of the factors that determine how much you can borrow. Since each lender has their own method of evaluating your maximum loan amount, it can vary significantly. At Your Best Interests our job is to help you find the right lender that fits your unique needs and circumstances.
What does Loan to value or LTV mean?
The LTV is the amount of mortgage you are borrowing vs the value of the property. For example
If you were to buy a property & the purchase price was 100,000 & the mortgage you were eligible for was 90,000 Then that mortgage would have an LTV of 90%
Note: In most cases the lower the LTV the better the interest rate.
What does my credit score mean and why is it Important?
Your credit rating is an essential factor that lenders consider when you apply for a mortgage. Your credit rating or credit score is a measure of your creditworthiness, based on your past credit history, payment behaviour, outstanding debts, and other financial information.
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Lenders use your credit score to assess the risk of lending you money. A high credit score indicates that you have a good credit history, and you are more likely to repay your mortgage on time, which makes you a lower-risk borrower. On the other hand, a low credit score indicates that you have a poor credit history, and you are more likely to default on your mortgage payments, which makes you a higher-risk borrower.
If you have a high credit score, you are more likely to be approved for a mortgage and offered lower interest rates and better terms. In contrast, a low credit score can lead to higher interest rates, stricter lending requirements, or even loan denial.
Therefore, having a good credit rating is crucial when applying for a mortgage because it can significantly affect your chances of getting approved, the interest rates you receive, and the terms of your mortgage. It's important to maintain a good credit score by paying your bills on time, keeping your credit card balances low, and avoiding opening too many new accounts.
Things that will affect your score are as follows:
1
How many credit commitments you have
2
The amounts of these credit commitments
3
Are you paying these commitments on time
4
Have you changed address many times in the last 3 years
5
Have you had any defaults, County court judgments or IVA’s in the past 6 years.
Banks and lenders rely on credit agencies to gather information about your credit history, allowing them to assess how well you have managed credit in the past. Each bank may work with different credit agencies, and the information they retrieve can vary.
Your credit report will show any late payments, defaults, and County Court Judgements (CCJs) you may have had, which can impact your credit score. These negative marks can stay on your credit file for several years, and even a few late payments within the last six years can make it difficult to secure a loan from high street lenders. In these cases, you may need to seek a specialist lender who can work with your unique financial situation.
Our specialist advisors have seen it all and will work tirelessly with you to find a lender that can help you
Note
Effective credit management is crucial for financial success & can lead to better deals & rates. At your best interests, our expert advisors provide personalized guidance to help you take control of your credit & unlock your full potential.
​What is the difference between a mortgage valuation, a homebuyer report and a structural survey?
Mortgage Valuation
A mortgage valuation is a basic survey conducted by the lenders to determine the value of the property. Their surveyors provide their report to the lender & this is usually assessed within 3 working days.
Homebuyer Report
A Homebuyer report is a more specialised survey than a standard valuation. The surveyor will provide you with a report detailing any issues that need fixing in the property. However the report will not include any structural issues.
Structural Survey
A structural survey is a detailed report which will include a report on the structure of the property and if there are any major issues that need to be dealt with or repaired.