Here are the
answers to some
commonly asked
questions

  • Am I too old to get a mortgage? 

    We will assess your income, including salary and/or current or future pensions, to seek the most appropriate lender.  A small number of lenders provide retirement interest only mortgages on which we can advise.

  • Can I add my parents or children to a mortgage as borrowers, but not owners of the property I wish to buy or remortgage? 

    Yes, subject to affordability for all parties involved.  Non-occupying borrowers or those not on the mortgage deed may need to get independent legal advice.  Lenders in this market offer “Joint Borrower, Sole Proprietor” mortgages which help boost affordability.  We can advise if this route is available and suitable for you.

  • What documents should I have available when applying for a mortgage? 

    If you are employed, you should supply your last P60 and three months’ pay slips and bank statements into which your salary is paid.  The statements should have your name and address on.

    If you are self-employed and a sole trader, your last two years’ tax calculations and overviews will be needed.  If you are a director of your own limited company, you will need to provide your last three years’ full trading accounts as well as tax calculations and overviews.  A lender will also need your last three months’ business bank statements and may go back further. 

    If you are remortgaging, your most recent mortgage statement and account number.

    If you are buying, proof of deposit and/or details of any sum that will be gifted.

  • How much can I borrow for a mortgage? 

    The most common question asked by people looking to raise a mortgage.

    The answer is not simple. it involves multiple personal factors on income and expenditure as well as varying lender criteria. In April 2014, the FCA released new regulation called the Mortgage Market Review (MMR). This regulation tightened up affordability checks and put more responsibility on mortgage lenders to ensure borrowers could afford the mortgages they were taking out. Since MMR lenders hide behind affordability calculators which ask a range of questions relevant to their criteria and then produce a maximum mortgage amount.

    Your brokers job is to find out all they can about your income and expenditure and research the market to find a mortgage suitable for your needs.

    Every lender has their own criteria when it comes to what they will and will not accept for income some lenders will take 100% of your bonuses, overtime and commissions into consideration while others may only take 50%. It is also common for lenders to have varying opinions on your expenditure. Some will take pension payments and childcare costs into their calculations while others will ignore them and have built It Into them into calculators already.

    Due to the complex nature of affordability, we would always recommend taking Independent Advice on your situation.

  • What is a capital repayment Mortgage? 

    A repayment mortgage is a term generally used in the UK to describe a mortgage in which the monthly payment will repay the capital amount borrowed as well as accrued interest, so that the amount borrowed decreases throughout the term and by the end of the loan term has been fully repaid. 

    Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

    Debt Consolidation: Think Carefully about securing other debts against your home. Your Home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

  • What is Life Assurance and how does it work?

    Life Assurance is an insurance policy that helps to protect your loved ones financially in the event of your death. You choose the amount of cover you need and the length of time you want to be insured for.

    It could be used to repay the mortgage or help protect the family’s lifestyle and everyday living expenses. Life Assurance is also known as life insurance, mortgage protection or level term assurance.

  • How much life insurance do I need? 

    It depends on your individual circumstances. You may want to think about leaving a lump sum to your dependents, inherence tax and estate planning or help to clear an outstanding mortgage on your death.

  • What is life insurance cover with a decreasing term?

    A decreasing term policy provides a level of cover that decreases throughout the term of the policy, broadly in line with a repayment loan or mortgage. This is usually cost-effective way to achieve the required level of cover.

  • What is the difference between terminal illness cover and critical illness cover? 

    Terminal Illness - is usually included in Life Assurance policies at no extra costs. It could pay out your chosen amount of cover if you are diagnosed with a terminal illness and have a life expectancy of 12 months or less, rather than on death.

    Critical illness Cover – is an additional policy. It is designed to pay out your chosen amount of cover if you’re diagnosed with one of the providers specified critical illnesses (for example heart attack, stroke etc) during the length of your policy.

  • Why do I need life insurance?

    Life insurance is optional, however there are many reasons to have it in place. For example, if you have a partner or family who may struggle to cope financially then life insurance could offer them the help they need at a very difficult time.

020 805 01899
SM&E WM,
PO Box 601,
Erith DA1 9YQ.

info@smewm.com