FAQS

The amount you can borrow depends on several factors, including your income, outgoings, credit score, and the lender's criteria. Typically, lenders use a multiple of your annual income to determine the maximum loan amount, often around 4-4.5 times your income. In some cases, lender may offer more than 5.5x or 6x of annual income to determine the maximum loan amount.

An Agreement in Principle (AIP), also known as a Mortgage in Principle, is a document from a lender stating that they would be willing to lend you a certain amount based on the information you’ve provided. It’s not a guarantee but helps you understand your borrowing potential. 

You can usually get an Agreement in Principle within 15-30 minutes if you apply online or through a mortgage broker. Some lenders may take up to 24 hours.

At Trusted Tree Mortgages, we offer a free initial consultation and disclose any potential fees after consultation.

The deposit required typically ranges between 5% -25% of the property's value, depending on the lender and the mortgage product and your personal financial circumstances.

Stamp Duty is payable on properties above a certain value. The amount depends on the property's price and whether you are a first-time buyer or purchasing an additional property

Expect to pay fees such as valuation fees, legal fees, Stamp Duty, and possibly broker fees. There may also be costs for surveys and moving expenses

Yes, there are several schemes such as Help to Buy, Shared Ownership, Right to Buy and Lifetime ISAs that can assist first-time buyers in getting onto the property ladder.

Base your initial offer on the property's market value, your budget, and your estate agent's advice. Be ready to negotiate. We recommend that first-time buyers and home movers consult a mortgage broker to understand their affordability and maximum loan amount before beginning their house search.

Yes, you can still get a mortgage if you've just started a new job. Lenders will consider your employment stability and income.

Lenders can consider your secondary income in the mortgage application, potentially increasing your borrowing capacity.

Foreign nationals living in the UK can secure a mortgage to buy their first home. Various lenders provide mortgage products for non-UK citizens, although the terms and conditions may differ. Consulting a mortgage broker who specializes in foreign national mortgages is recommended to explore your options and eligibility. At Trusted Tree Mortgages, we offer specialized service for foreign nationals who reside in the UK.

Yes, you can use a mortgage to purchase your first home in the UK. Many lenders offer mortgage products for foreign nationals with legal visas, although the terms and conditions may vary. It's advisable to consult with a mortgage broker who specializes in mortgages for foreign nationals to understand your options and eligibility.

Remortgaging means replacing your existing mortgage with a new one, either with the same lender or a different one, to take advantage of better terms or release equity from your property.

You might consider remortgaging when your current deal is about to end, if interest rates have dropped, or if you need to release equity from your home.

The remortgaging process typically takes between 4 to 8 weeks, depending on the complexity of your situation and the lender's requirements.

Remortgaging involves switching your existing mortgage to a new deal, either with your current lender or a different one, often to get a better interest rate or release equity. The process includes applying for a new mortgage, undergoing a property valuation, and completing legal checks.

You can start looking for a new mortgage deal around 3 to 6 months before your current fixed rate ends. This allows you to secure a new deal in advance and avoid reverting to your lender's standard variable rate.

At Trusted Tree Moertgages, we offer a free initial consultation and clearly outline any potential charges upfront. Most of our clients receive complimentary support, subject to specific terms and conditions.

A mortgage broker will help you find the best mortgage deals, guide you through the application process, and provide advice tailored to your financial situation. They can also assist with paperwork and liaise with lenders on your behalf.

Yes, there can be costs such as valuation fees, legal fees, broker fee sand early repayment charges from your current lender.

It may be possible, but options could be limited and interest rates higher. Consulting a mortgage broker can help you find suitable deals.

The process typically takes 4-8 weeks, depending on the complexity of your situation and the lender's requirements.

Benefits can include lower monthly payments, better interest rates, releasing equity for home improvements or other expenses, and consolidating debts.

Yes, non-UK residents can get a mortgage in the UK, but the process may be more complex and require additional documentation.

Lenders assess factors such as visa status, income, credit history, and the length of time spent in the UK.

Yes, non-UK residents may need a larger deposit, typically around 25-40% of the property's value.

Yes, expats can get a mortgage in the UK, but they may need to provide additional documentation and meet specific criteria.

Non-UK residents can access residential mortgages, buy-to-let mortgages, and remortgages, depending on their circumstances.

The process may involve additional checks, such as verifying overseas income and obtaining a credit report from the applicant's home country.

It may be possible, but options could be limited and interest rates higher. Consulting a specialist broker can help you find suitable deals.

Yes, some lenders specialize in providing mortgages to non-UK residents and expats, offering tailored products and services.

Required documents may include proof of identity, proof of income, visa status, and a credit report from the applicant's home country.

Costs can include arrangement fees, valuation fees, legal fees, and potentially higher interest rates due to the perceived risk.

Yes, non-UK resident foreign nationals can obtain mortgages through a Special Purpose Vehicle (SPV). An SPV is a legal entity created for the purpose of owning and managing property investments. This structure can offer tax advantages and help manage investment risks. Tax laws and regulations are subject to change, and their application can vary based on individual circumstances. We recommend consulting with a qualified tax advisor or legal professional to understand the specific tax implications.

Life insurance is a policy that pays out a lump sum to your beneficiaries in the event of your death, providing financial security for your loved ones.

The amount of life insurance you need depends on factors such as your income, debts, living expenses, and future financial goals. A common rule of thumb is to have coverage that is 10-15 times your annual income.

The main types of life insurance are term life insurance, which provides coverage for a specific period, and whole life insurance, which provides lifelong coverage and includes a savings component.

Yes, it is possible to get life insurance with a pre-existing condition, but it may affect your premiums and coverage options. It's best to discuss your specific situation with an insurance advisor.

Premiums are based on factors such as age, health, lifestyle, occupation, and the amount of coverage you choose. Healthier individuals typically pay lower premiums.

If you miss a premium payment, your policy may lapse after a grace period. Some policies offer options to reinstate coverage, but it's important to contact your insurer as soon as possible to discuss your options.

Income protection insurance provides a regular income if you are unable to work due to illness or injury, helping you cover essential living costs.

Typically, income protection insurance pays out between 50-70% of your pre-tax income, depending on the policy terms.

Payments can last until you return to work, reach retirement age, or for a specified period, depending on the policy.

Income protection payments are usually tax-free if you pay the premiums yourself. If your employer pays the premiums, the payments may be subject to tax.

Income protection insurance covers a wide range of illnesses and injuries, including physical and mental health conditions. Specific coverage details vary by policy.

The cost is based on factors such as your age, occupation, health, and the level of coverage you choose. Higher-risk occupations and older individuals typically pay higher premiums.

Contents insurance covers your personal belongings inside your home, such as furniture, electronics, clothing, and appliances, against risks like theft, fire, and water damage.

Make an inventory of your belongings and estimate their replacement value. Some insurers offer online calculators to help with this process.

High-value items, such as jewelry or art, may require additional coverage or separate policies. Check with your insurer for specific limits and requirements.

Some policies offer limited coverage for items temporarily taken outside the home, such as laptops or bicycles. Check your policy details for specific coverage.

An excess is the amount you pay out of pocket before your insurance covers the rest. Higher excesses can lower your premiums but increase your out-of-pocket costs in the event of a claim.

You can reduce costs by increasing your excess, installing security measures, and comparing quotes from different insurers to find the best deal.

Commercial mortgages are used for properties intended for business use, whereas residential mortgages are for properties for personal living. Commercial mortgages often have different terms, interest rates, and qualification criteria compared to residential mortgages.

A commercial mortgage is a loan used to purchase or refinance commercial property, such as offices, retail spaces, or warehouses.

Commercial mortgages typically have higher interest rates, shorter terms, and require a larger deposit compared to residential mortgages.

Properties such as office buildings, retail spaces, industrial units, and mixed-use developments can be financed with a commercial mortgage.

Lenders assess factors such as the business's financial health, credit history, property value, and the borrower's experience.

Deposits typically range from 30-40% of the property's value, depending on the lender and the property's risk profile.

Yes, commercial mortgages can be used to purchase property for business use, including offices, retail spaces, and industrial units.

The LTV ratio for commercial mortgages usually ranges from 60-80%, depending on the lender and the property's value.

Construction loans are specifically designed to fund the construction of new commercial properties. Funds are released in stages as the construction progresses, ensuring that the project is adequately financed at each phase.

Yes, including fixed-rate, variable-rate, and interest-only commercial mortgages, each with different terms and conditions.

Costs can include arrangement fees, valuation fees, legal fees, and early repayment charges.

Yes, refinancing an existing commercial mortgage is possible. This can help you secure better terms, lower interest rates, or access additional funds for business expansion or other needs.

The approval process for a commercial mortgage can take several weeks to a few months, depending on the complexity of the loan, the lender's requirements, and the completeness of the application.

Building insurance covers the cost of repairing or rebuilding your property's structure, including walls, roof, floors, and permanent fixtures, in case of damage from events like fire, storms, or vandalism.

While not legally required, building insurance is often a condition of a mortgage. It's highly recommended to protect your investment.

The cost is based on factors such as the property's rebuild value, location, construction type, and the level of coverage you choose.

Building insurance covers the structure of your home, while contents insurance covers your personal belongings inside the home.

Yes, some insurers offer policies specifically for properties under construction, but coverage details and availability may vary.

Contact your insurer as soon as possible to report the damage and provide any necessary documentation. Your insurer will guide you through the claims process.

A buy-to-let mortgage is specifically for properties that you intend to rent out, whereas a residential mortgage is for properties you plan to live in. Buy-to-let mortgages typically require a larger deposit and have higher interest rates.

A buy-to-let mortgage is a loan specifically designed for purchasing a property to rent out to tenants.

Typically, you need a deposit of at least 25% of the property's value, though this can vary by lender.

Yes, but it may be more challenging. Lenders often prefer applicants with existing property ownership experience.

Rental income is subject to income tax, and you may also be liable for capital gains tax when you sell the property.

Lenders usually require the rental income to cover 125-145% of the mortgage payments.

Interest rates for buy-to-let mortgages can vary widely depending on the lender, property type, expected rental income and the size of the deposit, and your credit profile. Generally, they are higher than residential mortgage rates.

No, buy-to-let mortgages are intended for rental properties only. Living in the property would breach the mortgage terms.

If your property is vacant, you will still need to make your mortgage payments. It's important to have a financial buffer to cover such periods. Some landlords also consider rental guarantee insurance.

Landlords must ensure the property is safe, maintain it, and comply with regulations such as gas safety checks and deposit protection.

Interest-only mortgages involve paying only the interest each month, while repayment mortgages include both interest and capital repayments.

Yes, you can remortgage to get a better rate, release equity, or switch to a different mortgage product.

You will still need to make mortgage payments, so it's important to have a financial buffer to cover any void periods.

.A bridge loan is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one.

Bridge loans provide quick access to funds, secured against your current property, and are typically repaid once the existing property is sold.

Bridge loans usually have terms ranging from 6 months to 2 years, with higher interest rates than traditional mortgages.

The net loan amount is the actual amount of money you receive after all fees and interest are deducted. The gross loan amount includes the total amount borrowed, including fees and interest that will be added to the loan balance. Understanding the difference is crucial for calculating the true cost of the loan and the maximum loan-to-value (LTV) ratio.

Lenders assess factors such as property value, equity, credit history, and the borrower's exit strategy for repaying the loan.

Yes, bridge loans can be used to finance property renovations, allowing you to improve and sell the property at a higher value.

Yes, bridge loans can be used to finance property renovations, allowing you to improve and sell the property at a higher value.

If you are unable to repay the bridge loan on time, it's important to communicate with your lender. They may offer options such as extending the loan term or refinancing. However, failure to repay can result in penalties or the lender taking possession of the secured property.

Bridge loans are typically secured against your existing property or the property you are purchasing. This provides the lender with collateral in case of default.

The amount you can borrow depends on the value of your existing property and the lender's criteria, typically up to 75% of the property's value.

No, bridge loans can be used for both residential and commercial properties.

Costs can include arrangement fees, valuation fees, legal fees, and higher interest rates compared to traditional mortgages.

It may be possible, but options could be limited and interest rates higher. Consulting a specialist broker can help you find suitable deals.

A home mover mortgage is designed for individuals who are selling their current home and buying a new one. It can help facilitate the transition between properties.

Many lenders allow you to port your existing mortgage to a new property, which means you can transfer your current mortgage deal to your new home.

The deposit requirements are similar to those for first-time buyers, typically around 5-20% of the property's value.

You may need to borrow additional funds, which could involve taking out a larger mortgage or using savings to cover the difference.

Yes, you can get a mortgage for a property in a different area, but lenders may consider factors like local property prices and your employment situation.

Consider factors such as interest rates, fees, the flexibility of the mortgage terms, and whether you can port your existing mortgage. Consulting a mortgage broker can help you find the best deal for your situation.

The costs of moving home can include estate agent fees, legal fees, Stamp Duty, removal costs, and any necessary repairs or renovations to your new property.

At Trusted Tree Mortgages, we offer a free initial consultation and clearly outline any potential charges upfront. Most of our clients receive complimentary support, subject to specific terms and conditions.

Not all mortgage brokers charge fees. Some brokers earn commissions from lenders instead. It's important to understand the fee structure and ensure transparency when choosing a broker.

The amount you can borrow depends on several factors, including your income, outgoings, credit score, and the lender's criteria. Typically, lenders use a multiple of your annual income to determine the maximum loan amount, often around 4-4.5 times your income.

Yes, many lenders allow you to port your existing mortgage to a new property without selling your current one. This means you can transfer your current mortgage deal to your new home.

Start by checking your credit score and financial situation. Then, get a mortgage preapproval to understand how much you can borrow. Next, find a property, make an offer, and complete the full mortgage application.

You can usually get an Agreement in Principle within 15-30 minutes if you apply online or through a mortgage broker. Some lenders may take up to 24 hours.

Yes, you can often borrow additional funds when porting your mortgage, but this may require a new affordability assessment and could involve different terms for the extra amount.

It's a good idea to speak with your mortgage broker when moving home to see if you can port your existing mortgage. Mortgage Brokers will help you to compare other mortgage products in the market.

An Early Repayment Charge (ERC) is a fee that some lenders charge if you repay your mortgage early, either by remortgaging or paying off the loan in full before the end of the agreed term.

A mortgage broker will help you find the best mortgage deals, guide you through the application process, and provide advice tailored to your financial situation. They can also assist with paperwork and liaise with lenders on your behalf.

You might be unable to port your mortgage if your new property doesn't meet the lender's criteria, if your financial situation has changed, or if the lender doesn't offer porting as an option.

The lender's valuation is an assessment of the property's value to ensure it is worth the amount you are borrowing. It helps the lender determine the loan-to-value ratio.

Stamp Duty is payable on properties above a certain value. The amount depends on the property's price and whether you are a first-time buyer or purchasing an additional property.

Solicitors' fees vary but typically range from £500 to £1,500, depending on the complexity of the transaction.

An HMO is a property rented out by multiple tenants who share facilities, while a MUFB consists of self-contained units with their own facilities. HMOs typically require more management and compliance with safety regulations

An HMO mortgage is a loan designed for properties rented out to multiple tenants who share common facilities like kitchens and bathrooms.

An HMO typically houses three or more tenants who are not from the same household, sharing common areas, whereas a standard buy-to-let property is usually rented to a single household.

HMOs can offer higher rental yields compared to single-let properties due to multiple tenants paying rent.

HMOs must meet specific safety standards, including fire safety regulations, and may require a license from the local council.

Typically, you need a deposit of at least 25-30% of the property's value, though this can vary by lender.

Yes, but you will need to meet local council regulations and may require planning permission and an HMO license.

Lenders usually require the rental income to cover 125-145% of the mortgage payments, similar to buy-to-let mortgages.

Yes, some lenders specialize in HMO mortgages and offer tailored products for these types of properties.

Costs can include arrangement fees, valuation fees, legal fees, and potentially higher interest rates due to the perceived risk.

Yes, you can remortgage to get a better rate, release equity, or switch to a different mortgage product.

An MUFB mortgage is a loan designed for properties that contain multiple self-contained units, such as flats, all under one freehold title.

An MUFB consists of separate, self-contained units, each with its own facilities, whereas an HMO has shared facilities among tenants.

MUFBs can offer diversified rental income streams and potentially lower management costs compared to multiple individual properties.

Typically, you need a deposit of at least 25-30% of the property's value, though this can vary by lender.

Yes, but you will need to meet building regulations and may require planning permission and separate utility meters for each unit.

Lenders usually assess the rental income based on the combined income from all units, requiring it to cover 125-145% of the mortgage payments.

Yes, some lenders specialize in MUFB mortgages and offer tailored products for these types of properties.

Costs can include arrangement fees, valuation fees, legal fees, and potentially higher interest rates due to the perceived risk.

Yes, you can remortgage to get a better rate, release equity, or switch to a different mortgage product.

MUFBs must meet specific building regulations, and each unit must be self-contained with its own facilities. You may also need to comply with local council regulations.

Development finance is a type of funding used to finance property development projects, including new builds, renovations, and conversions.

Unlike traditional mortgages, development finance is provided in stages to match the progress of the development project. This ensures that you have the necessary funds at each phase of the project.

Development finance can be used for a variety of projects, including new constructions, extensive renovations, property conversions, and large-scale developments.

Funds are released in stages, typically at key milestones of the development project. This staged approach ensures that you have the necessary capital when you need it most.

Property developers, builders, and investors can apply for development finance to fund their projects.

Eligible projects include residential developments, commercial developments, mixed-use schemes, and large-scale renovations.

Development finance is typically released in stages, or tranches, as the project progresses, with interest charged on the drawn-down amounts.

Lenders assess factors such as the developer's experience, project viability, planning permissions, and the exit strategy.

Lenders typically provide up to 65% of the Gross Development Value (GDV) and up to 90% of the total project costs.

Costs can include arrangement fees, valuation fees, legal fees, and interest on the drawn-down amounts.

It may be possible, but options could be limited and interest rates higher. Consulting a specialist broker can help you find suitable deals.

The exit strategy typically involves selling the developed property or refinancing with a long-term mortgage.

The process can take several weeks to a few months, depending on the complexity of the project and the lender's requirements.

Critical illness insurance provides a lump sum payment if you are diagnosed with a serious illness covered by the policy, such as cancer, heart attack, or stroke.

Commonly covered illnesses include cancer, heart attack, stroke, major organ transplant, and multiple sclerosis. Coverage details vary by policy.

The lump sum payment can be used for any purpose, such as covering medical expenses, paying off debts, or making necessary home modifications.

Yes, most policies have a waiting period, typically 30-90 days, before you can make a claim after being diagnosed with a covered illness.

It may be possible, but pre-existing conditions are often excluded from coverage. It's important to disclose your medical history when applying.

Premiums are based on factors such as age, health, lifestyle, and the amount of coverage you choose. Healthier individuals typically pay lower premiums.