We’ve compiled answers to some of the most frequently asked mortgage questions.
Last Updated: 27th September 2024
At AIMS-NI, Northern Ireland’s leading independent mortgage and loan advisory service, we understand that the mortgage process can feel overwhelming. That’s why our team of expert advisors is here to guide you through every step. To help make the journey easier, we’ve compiled answers to some of the most frequently asked mortgage questions. Whether you’re a first-time buyer, self-employed, or navigating bad credit, our advice will help demystify the mortgage process.
While many mortgage comparison sites allow you to compare offers from various lenders, working with an independent mortgage adviser is often the best way to secure the ideal deal. At AIMS-NI, we have access to over 5,000 mortgage products from more than 20 lenders. This broad market access ensures we can tailor our search to your specific financial situation, helping you secure the most suitable and cost-effective mortgage option.
The amount you can borrow depends on several factors, including the value of the property, the number of applicants, your income, spending habits, and credit history. Generally, the more you spend each month on expenses, the less you may be able to borrow. A mortgage adviser at AIMS-NI can evaluate your unique financial circumstances to give you a clear idea of how much you can realistically borrow.
When applying for a mortgage, you’ll need to provide proof of your income. Lenders usually request recent payslips (typically from the last three months) and P60s for the previous two years. If you’re self-employed, you will need to present SA302 tax returns from the last two years. Additional income sources, such as Universal Credit, Tax Credits, pensions, or maintenance payments, may also be taken into account. Bank statements are also required to verify your financial stability.
An Agreement in Principle (AIP) is a certificate from a mortgage lender indicating the amount they are willing to lend to you. Having an AIP is beneficial before you start searching for a property, as it shows sellers that you’re serious about buying and have the financial backing needed. While an AIP isn’t a guarantee, it strengthens your position when making an offer on a home.
There are several schemes available to help first-time buyers in Northern Ireland, including Shared Ownership, Rent-to-Buy, Lifetime ISAs, and the Right to Buy scheme. Each option is designed to make it easier to get onto the property ladder, but it’s essential to understand which one suits your situation best. Our AIMS-NI advisors can guide you through these schemes and help you decide which is the best fit for your homeownership goals.
In addition to the amount you borrow, there are several fees associated with getting a mortgage. Common costs include arrangement fees, booking fees, and valuation fees. Depending on the type of mortgage and property value, these fees could total over £3,000. It’s important to factor these additional costs into your budget. At AIMS-NI, we provide a full breakdown of all fees so you know what to expect.
Yes, it is possible to get a mortgage with bad credit. While a poor credit score may mean higher interest rates or fees, it doesn’t automatically disqualify you from securing a mortgage. At AIMS-NI, we work with lenders who specialise in bad credit mortgages. Every case is different, and we’ll take the time to review your complete financial picture to find a solution that works for you, even if other lenders have turned you down.
If you want to rent out your property while you still have a mortgage, you’ll need to get your lender’s consent. Each lender has its own terms and conditions for letting a mortgaged property, and in many cases, you may face higher interest rates or fees. Our mortgage experts can help you understand your lender’s requirements and guide you through the process of securing consent for letting your property.
A Buy-to-Let mortgage is specifically for those looking to purchase a property to rent out. Typically, these mortgages are interest-only, meaning you only pay the interest each month and repay the principal at the end of the term. The amount you can borrow is generally based on the expected rental income from the property. To qualify, you will need to provide proof of income and meet the lender’s affordability criteria. AIMS-NI can help you navigate the Buy-to-Let process and find the right deal for your investment.
If you have a variable or tracker mortgage, changes in interest rates will directly affect your monthly payments. For example, if interest rates increase, your direct debit payments will rise as well. On the other hand, if you have a fixed-rate mortgage, your payments will stay the same regardless of any interest rate fluctuations. Your lender is required to notify you in advance of any changes in payment amounts.
There are several common reasons why a mortgage application might be declined. The three most frequent issues are:
To avoid a declined mortgage, it’s essential to maintain a good credit score, avoid applying for unnecessary credit, and ensure you’re borrowing within your means. If your application has been declined elsewhere, contact AIMS-NI. We specialise in helping clients with complex financial situations secure the mortgage they need.
Whether you’re a first-time buyer, self-employed, or have been turned down by other lenders, our expert team at AIMS-NI is here to offer clear, personalised mortgage advice. With access to the entire mortgage market, we’ll help you find the perfect solution tailored to your needs. For a no-obligation consultation, get in touch with one of our friendly consultants today and start your journey to finding the right mortgage for you.
At AIMS-NI, we take the stress out of the mortgage process, offering expert advice and comprehensive market access to help you make informed decisions. Whatever your circumstances, contact us today, and let our award-winning team guide you toward the best mortgage solution.
Disclaimer
MOST FORMS OF BUY TO LET MORTGAGE ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR PROPERTY. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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