Right to Buy · Rates & Costs
The Right to Buy 100.
Rates & Costs
Focus: Fees, interest rates, and the total cost of borrowing.
What are the risks of using a loan for HMO property investment?
TL;DR Investing in HMOs using loans involves risks like regulatory changes, high vacancy rates, and financing default. Understand the complex financial and operational challenges.
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What’s the difference between an HMO loan and an HMO mortgage?
TL;DR HMO loans and HMO mortgages both fund Houses in Multiple Occupation (HMOs), but they differ greatly in structure, duration, and purpose. We explain the key differences.
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Can I get a commercial mortgage with bad credit?
TL;DR Having poor credit doesn't rule out commercial property finance. Learn how specialist UK lenders assess adverse credit history, the criteria they use, and what documentation you will need to secure a mortgage.
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How much deposit is needed for a commercial mortgage?
TL;DR Discover the typical deposit requirements for a commercial mortgage in the UK. We explain Loan-to-Value (LTV) ratios, minimum deposit expectations (usually 25%-40%), and factors influencing lender decisions for business property finance.
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What is an HMO mortgage?
TL;DR Understand what is an HMO mortgage, designed for properties rented by multiple unrelated tenants. Learn about licensing, specialist lenders, and securing finance for Houses in Multiple Occupation.
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What should first-time buyers know about mortgage approvals?
TL;DR Essential guide for UK first-time buyers navigating mortgage approvals. Learn about Decision in Principle (DIP), affordability checks, credit scoring, and required documentation.
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Do first-time buyers get better mortgage rates?
TL;DR First-time buyers often access special mortgage deals, but are the rates better? We analyze specific products, stamp duty breaks, deposit requirements, and factors affecting FTB rates. (159 chars)
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How much can I borrow as a first-time buyer?
TL;DR Discover how much you can borrow as a first-time buyer in the UK. We explain the 4.5x salary rule, deposit requirements, credit checks, and affordability assessments used by lenders to determine your mortgage limit.
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How much should I save for a mortgage deposit as a first-time buyer?
TL;DR Discover how much you need to save for a mortgage deposit as a first-time buyer in the UK. We explain minimum deposits (5-10%), average costs, and saving strategies.
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What happens if I can’t pay my mortgage?
TL;DR Worried about missing mortgage payments? Learn the immediate steps to take, the importance of contacting your lender, and the potential consequences, including repossession, if you can’t pay your mortgage in the UK.
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How long does it take to get approved for a mortgage?
TL;DR Discover the timeline for mortgage approval in the UK. We break down the stages, from application submission to final offer, covering factors like documentation, underwriting, and property valuation.
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What documents do I need to apply for a mortgage?
TL;DR Applying for a mortgage requires careful preparation. Learn exactly what documents you need, including proof of ID, income, address, and deposit statements, to ensure a smooth application process in the UK.
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How much deposit do I need for a mortgage?
TL;DR Learn how much deposit you typically need for a mortgage in the UK. We explain minimum requirements, LTV ratios, and schemes that can help first-time buyers.
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What if I want to downsize after taking out a Retirement Interest Only mortgage?
TL;DR Considering downsizing after getting a Retirement Interest Only mortgage? Learn how selling your property affects your RIO loan, the process of porting your mortgage, and the associated costs and considerations.
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What should I do if I’m worried about losing my collateral?
TL;DR If you are worried about losing property used as loan collateral, understand your options immediately. Learn about communication, refinancing, and managing repayments.
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Can contractors apply for the Right to Buy scheme?
TL;DR Contractors can apply for the Right to Buy scheme if they meet residency rules. Learn how contractor income affects mortgage eligibility and the buying process.
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What types of assets can be financed?
TL;DR Learn about the various assets you can finance in the UK, from residential property and commercial real estate to vehicles, plant machinery, and business assets.
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Can I move house with a RIO mortgage?
TL;DR Moving house with a RIO mortgage is possible, usually through 'porting' the existing loan or arranging a new one. Learn the rules, affordability checks, and how bridging finance could help.
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What are the most practical uses of a secured loan for my specific financial situation?
TL;DR Discover what are the most practical uses of a secured loan in the UK. From debt consolidation to home improvements, learn how this finance may suit your needs.
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Are there any fees involved in remortgaging?
TL;DR Remortgaging often involves several key fees, including product arrangement, valuation, and legal costs. Understand exactly which fees apply and how to minimise your overall expenses.
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How much equity do I need to remortgage?
TL;DR Understanding how much equity you need to remortgage your UK property is crucial. Learn about LTV ratios, minimum equity requirements, and why more equity means better rates.
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How do I calculate my home equity before remortgaging?
TL;DR Learn how to calculate your home equity accurately before remortgaging. We explain valuation, outstanding mortgage debt, and Loan-to-Value (LTV) ratios. Understand your borrowing power.
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What financial support exists for contractors buying their first home?
TL;DR Discover what financial support exists for contractors buying their first home in the UK, from specialist mortgages to government schemes and LISA benefits.
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Are there special grants for contractors buying homes?
TL;DR Discover if there are special grants for contractors buying homes in the UK. Explore government schemes, contractor-friendly mortgages, and eligibility tips.
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What affects mortgage interest rates in the UK?
TL;DR Understand what affects mortgage interest rates in the UK, from the Bank of England Base Rate and inflation to your personal credit profile and deposit size.
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Can contractors release equity from their home?
TL;DR UK contractors can release equity from their home via remortgaging or secured loans. Learn about lender requirements, daily rates, and the risks involved today.
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Are construction contractors eligible for mortgages?
TL;DR Construction contractors can secure UK mortgages through various routes. Learn how day rates, CIS schemes, and income evidence affect your mortgage eligibility.
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What if my contracts are irregular or seasonal?
TL;DR Finding a loan or mortgage with irregular or seasonal contracts is possible. Learn how UK lenders assess fluctuating income and how to improve your chances.
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Can contractors get buy-to-let mortgages?
TL;DR Discover how contractors can get buy-to-let mortgages in the UK. Learn about eligibility criteria, income calculations, and how to secure a property investment.
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What types of properties are eligible for mixed-use mortgages?
TL;DR Wondering what types of properties qualify for a mixed-use mortgage in the UK? This guide clarifies eligible property types, including shops with flats, and explores the associated risks and eligibility criteria. Learn about potential challenges a…
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Can I negotiate my mortgage rate with a lender?
TL;DR Can you negotiate your mortgage rate? Yes. Discover expert tips on how to negotiate effectively with UK lenders, when the best time is to switch deals, and how comparing offers can save you thousands.
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Can I refinance a buy-to-let property as a contractor?
TL;DR Learn how you can refinance a buy-to-let property as a contractor in the UK. Discover lender criteria, income assessments, and risks for professional landlords.
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Can I apply directly with a lender as a contractor?
TL;DR Contractors often ask, can I apply directly with a lender as a contractor? Explore the pros, cons, and how income is assessed for UK mortgage applications.
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Do all brokers understand contractor mortgages?
TL;DR Do all brokers understand contractor mortgages? Discover why specialist knowledge is essential for contractors and how tailored lending criteria work for you.
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How do early repayment charges work?
TL;DR Understanding how early repayment charges (ERCs) work is crucial when taking out a UK mortgage or loan. Learn how ERCs are calculated and when you might face them.
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Are there mortgage options with no deposit?
TL;DR Zero-deposit mortgages are rare but not impossible in the UK. Learn about 100% LTV options like guarantor mortgages and Joint Borrower Sole Proprietor schemes. Understand the risks and requirements.
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Are multi-unit freehold blocks considered HMOs for mortgage purposes?
TL;DR MUFBs and HMOs are distinct but can overlap. Learn if multi-unit freehold blocks are considered HMOs for mortgage purposes, affecting financing, valuation, and regulation in the UK.
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What happens if I cannot remortgage or sell the property?
TL;DR If you are struggling to remortgage or sell your property, understand your options, including forbearance, alternative lending, or dealing with default proceedings. Learn the risks and steps to take.
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Is now a good time to sell in my local property market?
TL;DR Deciding whether to sell property now depends heavily on local trends, not national averages. We break down the key indicators—demand, supply, and interest rates—you must check locally to determine if it is the optimal time for your move.
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What’s involved in financing a buy-to-let commercial property?
TL;DR Financing a buy-to-let commercial property involves securing a suitable mortgage, understanding the complexities of commercial lending, and meeting stringent lender requirements. Explore the process, including assessing your financial situation, f…
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How can I finance a commercial property purchase?
TL;DR Learn how to finance a commercial property purchase in the UK. Explore options like commercial mortgages, bridging loans, and specialist finance, detailing eligibility and risk factors.
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How do lenders determine my mortgage interest rate?
TL;DR Learn precisely how UK lenders determine your mortgage interest rate. We break down the key factors including your credit score, LTV ratio, the BoE base rate, and the chosen product type. Understand your costs better.
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Can I remortgage to pay for my children’s education?
TL;DR Remortgaging your home can be a viable way to fund school fees or university costs in the UK. Learn how to release equity safely, the pros and cons, and the risks involved.
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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