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The world of Mortgages can be a confusing place.

If you are completely new to Mortgages, setting about trying to find one can be a daunting prospect. Gaskells aim to remove the stresses and strains involved, make the process as simple as possible and we will clearly explain every aspect during the process of finding the right mortgage for you. However, below is some useful information we've put together to get you started including some basics on mortgages, a breakdown of how we work and the mortgage process and a 'Jargon Busting' Glossary.

FAQ's

I don't know which mortgage to choose, how do I get advice?
Contact Gaskells and speak to one of our qualified mortgage advisers who can provide you with professional mortgage advice over the telephone on the mortgage that is best suited to your needs. Or you can complete the Contact Enquiry Form and we can call you at a time that is convenient to you.

Do I have to pay for the service?
Our only charge is a non-refundable flat administration fee of £295 which is payable when a formal offer of a mortgage is received from the lender.

Are you tied to a particular lender?
No. We offer professional mortgage advice on products from our comprehensive panel of lenders.

Is the service confidential?
The service we provide is completely confidential.

How much can I borrow?
This will depend on a number of factors including:

  • Whether you are a first-time buyer or a home-mover
  • Whether you can put down a deposit and the size of your deposit
  • Whether you are borrowing on your own or with someone else
  • How much you earn
  • Your monthly financial commitments
  • Past credit history

However, for an estimate please contact Gaskells.

How We Work & The Mortgage Process

Step 1 - Initial Consultation (Factfind)
Contact Gaskells for an initial consultation or complete the Contact Enquiry Form to arrange a time for us to call you back. The initial consultation will involve one of our mortgage advisers gathering information from you that we require to start the process.

Step 2 - Search the Mortgage Market
We will then search our comprehensive panel of lenders for a product that best suits your needs, requirements and situation. We will then send confirmation of our discussion and recommendation in writing. We can also provide a full advice and recommendation service for insurance products.

Step 3 - Submit Application Form to Lender
Following your agreement to our recommendation we submit it to the relevant lender usually via the internet We will also submit any forms relating to general insurance and pure protection products to the relevant product provider if we have provided advice and recommendation on these products. We then monitor the progress of your application and keep you updated on a regular basis.

Step 4 - Mortgage Offer
Gaskells will monitor the mortgage application process from start to finish, enabling you to have complete peace of mind. After your application form has been submitted, the lender will typically need to carry out a valuation of your new property. Once this is done and your application has been accepted, a mortgage offer will then be issued by the lender. This needs to be checked and signed by you and returned to us.

Step 5 - Appoint a Solicitor or Conveyancer
You will need to appoint a solicitor or conveyancer who will deal with legal aspects of purchasing your new property and selling your existing property, if applicable. This process is commonly known as 'conveyancing' and it includes researching the property's legal boundaries, obtaining the legal deeds and advising you on a draft contract of sale. Your solicitor or conveyancer will also carry out searches and agree a date for completion. With your consent we can introduce you to a solicitor who will act on your behalf during the transaction.

Step 6 - Exchange Contracts
Once your solicitor or conveyancer has carried out the necessary legal work and the mortgage offer has been made and received by you, the contracts can be exchanged. Once each party has signed the contracts and they have been exchanged, they are legally binding. The contracts will include a completion date, which is the date that you take legal ownership of the property. You will also need to arrange buildings insurance so that the property is insured from the exchange of contracts.

Step 7 - Legal Completion
This is the last stage of the process when your solicitor or conveyancer completes the purchase of the property on your behalf. The Transfer Deed, the document confirming you as the owner of the property, is then sent to the relevant registry so that records can be updated showing you as the new owner. The property is then legally yours and you can move in. In some cases, contracts are exchanged and legal completion takes place on the same day.

Definitions & Glossary

APR This stands for Annual Percentage Rate and can be used to compare the cost of borrowing money from different lenders.

Basic valuation A check carried out by a surveyor, on the property, which determines how much the property is worth and to confirm that the property is suitable for a mortgage.

BBR This stands for Bank base rate, which is set every month by the Bank of England.

Buy-to-let mortgage A mortgage designed for property investors who buy a property and then rent it out.

Capital and interest mortgage This is sometimes called a repayment mortgage. With this type of mortgage you pay off some of the capital (the amount of money borrowed) and some of the interest every month.

Capped rate With this type of mortgage, the rate that you pay is variable to a maximum limit set at the outset for a fixed period (it can go up and down).

Cashback* Some mortgages offer cashback as an incentive. It is a cash sum that you receive when your mortgage completes.

Conveyancing The legal process for buying and selling property.

Discounted rate* With this type of mortgage, the rate that you pay is discounted from the lender's standard variable rate. This discount is guaranteed for a set period of time and the rate can go up and down.

ERC This stands for Early Repayment Charge and is an amount of money that you may be charged if you fully repay your mortgage before a set time, usually before the end of the incentive period.

FCA This stands for the Financial Conduct Authority. The FCA is an independent organisation that regulates specific areas of the financial services industry including mortgage advice.

Fixed rate* With this type of mortgage, the rate you pay is fixed for a set period of time.

Freehold This means you own the property and the land the property is on.

Full Structural Survey This survey is a more in-depth review of the condition of the property than a homebuyer survey. It does not incorporate a basic valuation.

HLC This stands for higher lending charge and it is an insurance policy that you pay for but which protects the lender in the event that the lender may have to repossess the property, sell it and then does not retrieve enough money in the sale of property to repay the mortgage in full. This policy would then pay the outstanding balance remaining. The borrower, however, is still responsible for the outstanding balance.

Homebuyers report This is a survey, which reviews the condition of the property, and incorporates a basic valuation.

Interest-only With this type of mortgage you only pay off the interest every month, not the capital (the amount of money borrowed). The capital is paid back at the end of the mortgage term. A repayment vehicle, such as an endowment policy or Individual Saving Account, could be used however you should seek independent financial advice. Pink Home Loans do not advise on investments.

Leasehold This means you own the property for a set period of time but not the land the property is on. After the set period of time, ownership of the property reverts to the freeholder. Many flats are leasehold properties.

LTV This stands for loan to value and denotes the relationship between the amount of money you want to borrow (the loan) and the cost of the property (the value) and is expressed as a percentage. For example, if you borrow £85,000 and your property costs £100,000, then the loan to value is 85%.

Mortgage This is a loan that is used to buy a property, where the loan is secured against the property as a charge. This acts as security for the lender in case you fail to repay the loan.

Repayment mortgage This is sometimes called a capital and interest mortgage. With this type of mortgage you pay off some of the capital (the amount of money borrowed) and some of the interest every month.

Stamp Duty Land Tax (SDLT) This is a tax that may be payable on purchases of flats, houses and other UK land and buildings.

What our clients say

"Brilliant service and advice made it so simple"

Bob Hales, West Sussex

Get in touch. Call us on 01273 248929 for a chat