Mortgages
Frequently Asked Questions

This is based on your income, current credit commitments, the amount of deposit you have and to some extent your credit scoring.

This can be as low as 5%. Normally the minimum deposit is 10% however there is a significant reduction in the interest rates available on deposits over 15%.

This is dictated by three things, the amount borrowed, the term of the mortgage and the interest rate charged and therefore is quite specific to each individual. A general rule of thumb would be about 3 to 4 times your salary.

A repayment mortgage is guarantees that your mortgage will be paid off by the end of the term as long as all payments have been made. 

With an interest only mortgage,  you are only paying the interest that is due therefore at the end of the term you still owe the same amount that you originally borrowed and would need to either sell your property to repay the mortgage or find the money to repay it from another source by that time 

If your income is not enough to get the mortgage amount required then a close family member(usually parents) can act as a guarantor however the guarantor will need to prove that they can afford all of the mortgage in addition to any mortgage they may have of their own.

The building needs to be insured. Mortgage Protection/Life insurance is usually recommended. 

Yes – this is possible and is dependent on a few factors.

  • Stamp Duty: Tax which is currently payable at the following percentages: 
    • Up to £125,000 – no stamp duty to pay
    • £125,001-£250,000 – 2%
    • £250,001-£925,000 – 5%
    • £925,001-£1.5 million – 10%
    • Over £1.5 million – 12%
  • So, if you were to purchase a house for £300,000, you would pay no stamp duty on the first £125,000, 2% on the next £125,000 and 5% on the final £50,000.  
    • This would be calculated as follows:  
      • £125,000 at 2% = £2,500 plus £50,000 at 5% = £2,500
      • Total Stamp Duty bill would be £5,000
  • Solicitor’s fees: These are also based on the purchase price, a quotation can be provided on request; we have relationships with a number of different Conveyancing firms. A first- time buyer will pay between £500.00 and £1,000.
  • Valuation fee: Based on the purchase price and varies from lender to lender and are sometimes free.
  • Lenders arrangement fees: Can usually be added to the mortgage if required and average between  £999.00 to £1499.
  • Mortgage broker fee: Our typical fee is between £250 & £500 which is reduced for repeat customers.

Yes you can, but early repayment penalties may be applicable if you have only had your current mortgage product for a short time or are in your fixed period.

Most Lenders allow you to pay off up to 10 percent of the balance in any one year without incurring any repayment penalties.

You can normally only have one residential mortgage, but you are able to buy other properties to let out.

A buy to Let mortgage is where you a buy another property specifically as an investment with the intention of letting it out. The mortgage is agreed based on the rent and not your own income.

Usually a minimum of  25% deposit is needed for a Buy to Let mortgage.

Not for your main residence but investment properties bought as Buy To Let’s will be subject to Capital Gains Tax.

By contacting us at HLSA FS Ltd for a free no obligation assessment

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