FAQ'S

A Decision in Principle (DIP), also known as an Agreement in Principle (AIP), is an initial indication from a lender about whether they would be willing to offer you a mortgage. It’s a preliminary decision based on basic information you provide, such as your income, debts, credit history, and the amount you’re looking to borrow.

While a Decision in Principle is not a guarantee of a mortgage, it helps give you an idea of how much you might be able to borrow and whether you’d be likely to be approved for a loan. It’s a key step in the home-buying process.

The residential mortgage process typically follows these steps:

Preparation
Assess your finances, including credit score, savings, and debts. Save for a deposit (usually 5-20% of the property price).

Decision in Principle (DIP)
Apply to a lender for a DIP, which gives an idea of how much you may be able to borrow based on basic financial information.

House Hunting
Start searching for properties within your budget. Once you find a property, make an offer.

Mortgage Application
Apply for a formal mortgage, providing detailed financial information and documents. Choose the type of mortgage and term.

Approval Process
The lender performs a full credit check, reviews your financial situation, and arranges a property valuation. If everything is in order, they issue a formal mortgage offer.

Completion
Sign the mortgage offer and exchange contracts. On completion day, the lender transfers funds to the solicitor, and you receive the keys to your new home.

After securing a mortgage, it typically takes 4 to 8 weeks to receive your keys. This includes the time to complete legal checks, exchange contracts, and finalise the transfer of funds. 

The exact timeline depends on factors like the complexity of the transaction and the efficiency of all parties involved.

Yes, it’s possible to get a mortgage with adverse credit, though options may be limited. Lenders may offer mortgages with higher interest rates or require a larger deposit. 

Specialist lenders or brokers who deal with bad credit mortgages can help find solutions tailored to your financial situation.

For a Buy to Let mortgage, the deposit generally ranges from 25% to 40% of the property’s value. The exact amount will depend on factors like the lender’s criteria, your credit history, the rental income potential, and the location of the property. 

Some lenders may require a larger deposit if you have a less favourable credit profile or if the rental income doesn’t cover the mortgage payments sufficiently. Always compare different lenders for the best terms.

For a commercial mortgage, lenders typically require the following:

Deposit: Usually 25% to 40% of the property’s value.

Business Plan: A solid business plan to demonstrate profitability and how the property will be used.

Income and Financials: Proof of business income, including financial statements and cash flow.

Credit History: A good personal and business credit score is important, though some lenders specialise in offering loans to those with poor credit.

Property Type: Lenders assess the property’s value and potential for generating income.

Equity release through a lifetime mortgage allows homeowners aged 55 or older to access the equity in their property without having to sell it. 

With a lifetime mortgage, you borrow a lump sum or take out a drawdown facility, secured against your home. 

The loan, plus interest, is repaid when you sell the property, move into long-term care, or pass away. There are no monthly repayments, as the interest compounds over time, and the debt is settled upon sale of the property.