Frequently Asked Questions
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How much can I borrow?
How long will it take to get my mortgage offer?
I need to borrow in excess of £500,000 – should I just go to my bank?
The press tell me I should have a daily interest mortgage. Why?
What home insurance will I be required to take?
How much can I borrow?
Residential mortgage lenders usually work on a multiple of income typically around 3 to 3.5 times the first applicant and one of the second if a joint application. Joint multiples can be used if this works out more favourably and these are usually between 2.75 to 3 times. Increasingly more and lenders are working on affordability calculations. This typically involves a credit score being carried out and analysis of your income and expenditure. Some lenders will look at lending enhanced amounts depending on your circumstances. If you feel that you need to borrow over the standard lending amounts talk to us to see how feasible this will be. We can, in certain circumstances, present a case to a lender that does not fit with their standard criteria for review.
How long will it take to get my mortgage offer?
All sorts of different factors can affect the time it takes to receive your offer. Uk Direct Mortgages Ltd. has extensive knowledge of how lenders work, what the average turnaround time is for each lender and if any lender is experiencing delays. This knowledge means that if an offer timing is crucial we can place your mortgage with a lender who can deliver.
I need to borrow in excess of £500,000 – should I just go to my bank?
Just because you need to borrow a large amount doesn't necessarily mean that a lender who doesn't know you won't lend you the money. In addition a lot of high street lenders cap the level at which they will offer their core product range or they may load the rate you are paying. We have knowledge of the lenders that do not penalise you for borrowing larger amounts and we may be able to get you a much better rate than your own bank can offer.
The press tell me I should have a daily interest mortgage. Why?
Traditionally lenders used to charge interest on an annual basis. This meant that if you overpaid on your mortgage during that year it wouldn't lower the amount of interest that you would be paying. More mortgage lenders now charge interest on a daily basis, meaning if you overpay your balance is reduced immediately and you pay less interest. However if the difference in the rate charged between a daily interest mortgage and an annual interest mortgage is significant enough and the amount you overpay by is relatively small it could work out more favorably to have an annual interest bearing product. We will check the details like this when researching the market for you. The key thing to keep in mind is not whether your interest should be charged daily or annually, but which mortgage is the most suitable for you, and offers you the best value.
What home insurance will I be required to take?
Buildings insurance
This is essential. It is not likely that you could afford to rebuild your home if it were destroyed. All lenders will want to know that adequate buildings insurance is in place by the time you take your mortgage and it is your responsibility to arrange this. Sometimes your lender will insist that you use their block policy. If you have arranged your own buildings insurance the lender will want the details for their records and may charge a small administration fee.
Contents insurance
Lenders are not likely to insist on you having contents insurance. It does not affect the security of the mortgage loan, but it will affect you. You need to ensure that the level of cover as well as the type of cover you have is suitable. Some policies are available where the cover is unlimited, although these will usually cost more.
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