Right to Buy · Speed & Process
The Right to Buy 100.
Speed & Process
Focus: Timelines, applications, and the legal process.
How do I choose between a 2-year and 5-year fixed-rate mortgage?
TL;DR Choosing between a 2-year and 5-year fixed-rate mortgage requires balancing low initial rates against long-term security. Learn how your financial goals, potential rate shifts, and future plans impact this crucial UK property decision.
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What happens when my fixed-rate mortgage ends?
TL;DR When your fixed-rate mortgage ends, your payments change. Find out why you move to the Standard Variable Rate (SVR), how to secure a new deal, and the steps you must take to avoid higher costs.
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How much does a mortgage broker charge for remortgaging?
TL;DR Discover how much a mortgage broker charges for remortgaging in the UK. We explain typical fee structures, including flat fees, percentage charges, and commission models, so you can budget effectively for your next rate switch.
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How long does a mortgage approval last?
TL;DR Discover the typical lifespan of a UK mortgage offer. Learn about the validity period (usually 3 to 6 months), extensions, and what happens if your approval expires before completion.
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Are HMO mortgages more expensive than regular buy-to-let mortgages?
TL;DR HMO mortgages often involve higher rates and fees than standard BTL loans due to increased complexity and risk. We explore the cost differences, factors affecting pricing, and what landlords should consider.
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How do HMO mortgage rates compare to buy-to-let mortgage rates?
TL;DR HMO mortgages are complex and typically involve higher interest rates and fees than standard buy-to-let loans. Learn why lenders view HMOs as higher risk and how this impacts borrowing costs for UK landlords.
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What fees are typically associated with HMO mortgages?
TL;DR Understand the mandatory costs associated with UK HMO mortgages, including arrangement fees, valuation charges, legal costs, and licensing requirements. Prepare for your investment.
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Can mortgage brokers help secure lower rates for HMO properties?
TL;DR HMO mortgages are complex. Find out how specialist UK mortgage brokers can significantly improve your chances of securing the lowest possible interest rates and favourable terms for your Houses in Multiple Occupation.
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Do lenders charge higher interest rates for large HMOs?
TL;DR Lenders generally charge higher interest rates for large HMOs (7+ tenants) due to increased complexity, regulatory risk, and specialised management requirements. (159 chars)
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Can I get an HMO mortgage with bad credit?
TL;DR Getting an HMO mortgage with bad credit can be challenging but often achievable through specialist lenders. We explore credit issues, lending criteria, and steps you can take to secure finance.
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What type of income do I need to qualify for an HMO mortgage?
TL;DR Discover the income requirements for securing an HMO mortgage in the UK. We explain how lenders assess income from employment, property portfolios, and self-employment to determine eligibility.
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What is a commercial mortgage and how does it work?
TL;DR A commercial mortgage is finance used to buy non-residential property. Learn how these loans differ from residential mortgages, who can apply, the typical terms, and key risks involved in commercial lending in the UK.
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Does my current property still meet my needs (size, location, condition)?
TL;DR Assess if your house still works for you. We help you evaluate size, location, and condition to determine if you should renovate, downsize, or move, ensuring your home supports your lifestyle.
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What are the long-term benefits of HMO investments?
TL;DR Explore what are the long-term benefits of HMO investments, including higher yields and capital growth potential. Learn about increased income streams, risk diversification, and essential UK regulations.
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Does the calculator include any thresholds for responsible lending?
TL;DR Learn if lending calculators include thresholds for responsible lending in the UK. We explain how lenders use affordability assessments and regulatory requirements to ensure compliance.
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Does the calculator account for existing debt repayments when calculating affordability?
TL;DR Yes, affordability calculators always account for existing debt repayments to determine your borrowing capacity. Learn how lenders use DTI ratios and essential debt information.
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How does the calculator differentiate between income and expenses?
TL;DR Financial calculators differentiate income (salaries, benefits) from expenses (debts, living costs) by grouping inputs into positive and negative categories to assess affordability and cash flow.
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Can I get help with my mortgage payments if I lose my job?
TL;DR Losing your job is stressful, but help is available for mortgage payments. Learn about Government support (SMI), income protection insurance, and lender forbearance options in the UK.
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What documents are needed for an HMO mortgage application?
TL;DR Applying for an HMO mortgage requires extensive documentation covering your finances, the property itself, and compliance with licensing rules. Learn exactly what documents are needed for an HMO mortgage application in the UK.
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Are there any alternative government schemes or grants that I qualify for?
TL;DR Exploring UK government grants and alternative schemes for financial support? We detail eligibility criteria for various UK grants, benefits, and local council assistance programmes available today.
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What insurance do I need for an HMO property?
TL;DR Running an HMO requires specialist insurance. We detail what insurance do i need for an HMO property, covering essential Buildings and Public Liability policies, plus optional covers like Contents and Rent Guarantee.
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Can I convert a regular buy-to-let mortgage into an HMO mortgage?
TL;DR Converting a standard BTL to an HMO requires remortgaging onto a specialist product. Learn the steps, criteria, and costs involved in changing your property's mortgage type.
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What legal requirements must be met before applying for an HMO mortgage?
TL;DR Before securing an HMO mortgage, understanding licensing is crucial. Learn about mandatory vs. additional licensing, property standards, and fire safety regulations in the UK.
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How do I apply for an HMO mortgage in the UK?
TL;DR Applying for an HMO mortgage involves specific licensing, strict lending criteria, and specialised lenders. Learn the essential steps, from securing an HMO license to finalising the application in the UK.
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Are bridging loans suitable for HMO investments?
TL;DR Bridging loans can be highly suitable for HMO investments, especially for rapid purchases or conversion projects. Learn how bridging finance works for buy-to-let HMOs and the key risks involved.
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How do development loans work for HMO conversions?
TL;DR Learn exactly how development loans work for HMO conversions in the UK. Understand staged funding, drawdown, exit strategies, costs, and key risks involved in property development finance.
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Can I get an HMO mortgage for a professional let?
TL;DR Yes, you can get an HMO mortgage for a professional let. Lenders focus on the property's HMO licence status and the number of tenants, not their specific employment type.
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Can I offset HMO mortgage interest against rental income?
TL;DR Landlords holding HMOs personally cannot fully deduct mortgage interest as an expense. Discover the tax rules, the 20% tax credit system, and how Limited Company ownership offers a different approach to offsetting costs.
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What’s the typical timeline for securing an HMO mortgage?
TL;DR Understand the typical timeline for securing an HMO mortgage in the UK. We break down the stages, from application to completion, usually taking 6 to 12 weeks.
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Is an HMO a good investment for beginners?
TL;DR Considering an HMO investment as a beginner? Learn about the high potential returns, complex regulations, and demanding management required for Houses in Multiple Occupation (HMOs) in the UK.
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What’s the difference between a large HMO mortgage and a small HMO mortgage?
TL;DR Discover the crucial differences between small and large HMO mortgages. Learn about mandatory licensing, specialist criteria, tenant numbers, and the valuation methods lenders use in the UK.
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Are there tax reliefs for HMO landlords in the UK?
TL;DR HMO landlords in the UK can benefit from specific tax reliefs, including capital allowances on fixtures and expense deductions. Learn about key deductions, rules, and compliance requirements for HMO property owners.
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What happens if my HMO property becomes vacant?
TL;DR If your HMO property becomes vacant, you face licensing risks, mortgage issues, and financial strain. Learn the steps landlords must take to mitigate risk and manage costs in the UK.
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What is the best way to improve my chances of HMO mortgage approval?
TL;DR Boost your chances of HMO mortgage approval by strengthening your application, proving HMO management experience, improving credit scores, and detailing robust cash flow projections.
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How much should I set aside for unexpected costs?
TL;DR Learn how much should i set aside for unexpected costs, following the expert 3-to-6 month rule. Calculate your essential expenses and build a robust emergency fund.
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Do I need to save an emergency fund?
TL;DR Discover why having an emergency fund is crucial for financial stability in the UK. Learn how much you should save, practical saving strategies, and how a safety net protects you from unexpected costs.
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Do I want a freehold or leasehold property?
TL;DR Understanding whether you want a freehold or leasehold property is vital before buying in the UK. Learn the rights, responsibilities, costs, and risks associated with each tenure type.
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Does the property have the right planning permissions?
TL;DR Buying property? Ensure the planning permissions are correct before completion. Learn how to verify property permits, understand building control, and mitigate financial risks.
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What’s the best location for my work commute?
TL;DR Choosing where to live significantly impacts your finances and quality of life. Learn how to weigh property costs against commuting expenses to find the best location for your work commute.
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What should I bring to property viewings?
TL;DR Preparing for a property viewing? Discover the essential checklist of items, documents, and questions you need to bring to make an informed decision on your next home.
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What questions should I ask the estate agent?
TL;DR Buying a home? Knowing what questions to ask the estate agent is crucial. We detail essential queries about the property, the chain, local area, and price negotiation tactics.
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What council tax band is the property in?
TL;DR Need to know your property's Council Tax band? Learn how bands are determined, where to look up your band online (UK), and what steps to take if you need to challenge the valuation.
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How much are the average utility bills?
TL;DR Find out how much the average utility bills are in the UK. We break down costs for gas, electricity, water, broadband, and council tax, providing practical tips to help you manage your monthly household budget.
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Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk