Mortgages: Frequently Asked Questions

Getting a mortgage involves several steps – but a good place to start is by assessing your personal financial situation. It’s important to review your income, your outgoings, your credit and any savings you have.

You will then need to get a Decision in Principle (DIP). This is also sometimes known as an Agreement in Principle. A DIP provides you with an estimate of how much you can borrow, and it reassures estate agents that you’re serious about buying.

When you have found a property and your offer has been accepted, you can then apply for a mortgage. During this process, you will need to provide the lender with a range of documentation, including proof of income, such as payslips, as well as bank statements, proof of your current address, and ID.

The lender will then assess your affordability, and they will also carry out a property valuation to determine that it is worth the loan amount. Once this has been approved, you will receive your formal mortgage offer.

Using a mortgage broker like Ascot Mortgages can help make this process easier. Our team is dedicated to finding you the best mortgage deals. 

There are many different types of mortgages, and the right deal for you will depend on a range of factors.

The main types of mortgages available are:

• Fixed-rate mortgage – the interest rate remains the same for a set period of time, providing predictable monthly repayments
• Tracker mortgage – the interest rate follows the Bank of England base rate, meaning it can rise or fall
• Discounted mortgage – the interest rate is discounted below the lender’s Standard Variable Rate (SVR) for a fixed period of time
• Capped-rate mortgage – the interest rate can go up and down, but it will not rise above an upper agreed limit known as the cap
• Current account mortgage – this combines a mortgage with a current account enabling borrowers to balance savings and income against the mortgage balance
• Offset mortgage – this mortgage keeps your current account and savings in separate accounts which are ‘offset’ against your mortgage when calculating interest.

The main difference between a fixed-rate mortgage and a tracker mortgage is how the interest rate is set and whether or not it can change during the term of the mortgage.

A fixed-rate mortgage is where the interest rate remains the same for a fixed period of time. This means that you can expect your monthly repayments to remain consistent, protecting you from interest rate changes across the market and providing you with predictability and stability. 

Meanwhile, a tracker mortgage has a variable interest rate that can rise and fall in line with the Bank of England’s base rate for a fixed period of time. This means if the base rate drops, so will your monthly repayments. After the set period is over, the mortgage reverts back to the lender’s SVR. 

How much you can borrow for a mortgage usually depends on several key factors, such as your income, outgoings, credit score and how much you have set aside for your deposit.

Usually, lenders offer around four times your annual income, although this can vary. If you are applying for a mortgage with a partner, both incomes are often considered.

However, it’s also important to note that lenders take your existing finances into consideration too. This can include loans, credit cards and if you have any dependents – all of which can have an impact on your affordability. Lenders carry out affordability checks to make sure that you are able to comfortably make your repayments alongside all of your other outgoings.

To get a clearer idea of how much you might be able to borrow, take a look at our online mortgage calculator as a starting point. Don’t hesitate to contact our team for more information.

Yes, you can still get a mortgage even if you have bad credit. While a poor credit history can  make the process more challenging, there are lenders who specialise in helping people with bad credit  secure a mortgage deal.

There are a number of reasons why someone might have a bad credit score. This can be due to late or missed payments, County Court Judgements (CCJs), defaults on loans or even bankruptcy. The severity and how recent your financial issues are is likely to have an impact on your mortgage options. There are many lenders that assess applications on a case-by-case basis, taking all of your financial history into consideration – not just your credit score.

At Ascot Mortgages, we work with various lenders that consider applicants with poor credit histories. We are here to understand your situation so that we can help find you the best mortgage deal. 

There are a number of fees to be aware of when applying for a mortgage.

One common example is the booking fee – this is an upfront cost requested by the lender to secure your mortgage rate. You will also need to pay a valuation fee which enables the lender to assess the property’s value. 

There are also legal costs to consider, including conveyancing fees, which cover the legal work involved in transferring ownership of the property. If you decide to have a building survey carried out, you will also need to pay for this.

You will be required to pay a mortgage arrangement fee to cover the lender’s costs in setting up the mortgage. This might be paid upfront or added to the mortgage balance with a small percentage paid upfront – it is usually the borrower’s choice. You will also need to cover the solicitor’s fees for handling all of the legal work involved.

At Ascot Mortgages, we believe that using a mortgage broker offers a range of advantages, especially in today’s competitive and complex market. Using a broker like Ascot Mortgages means that you stand to save a significant amount of time, money and stress. 

When you use a broker, you will have access to a wide range of lenders, including deals that are not always available elsewhere. As a result, we are able to find you the most competitive rates and mortgage products that are tailored to your specific needs. 

Whether you are a first-time buyer or you’re remortgaging, our expert guidance means we can offer you personalised advice to ensure you make the most informed decision. 

We are also on hand to take care of paperwork, liaise with lenders and guide you through each step of the way. Having Ascot Mortgages on your side can make the process smoother, faster, and more successful.