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Securing a mortgage

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If you’re a first-time home buyer, it’s likely that the first thing you need to know is the process of obtaining a mortgage. Given that a mortgage is a significant financial obligation, it’s crucial to assess your options thoroughly and find the best product for your needs. To assist you in your journey towards securing a mortgage offer and ultimately, your very own front door, we have tried to simplify it to give you an overview of what you’ll need to know.

Check your credit rating

Mortgage lenders consider various factors when determining whether and how much to lend you. One crucial factor is your credit score, which often serves as the first point of reference for lenders to evaluate how well you’ve managed your finances in the past. It’s essential to understand how lenders will assess your credit score when you’re considering taking out a mortgage, as well as how you can check and boost your current score. Sign up for a credit score provider to see your current score and to get an overview of your history over the last 6 years. It will tell you if your score is poor, good or excellent. You can also check that everything is correct and accurate and take steps to amend anything that is incorrect.

The right mortgage for you

When it comes to mortgages, there’s no universal solution that fits everyone’s needs, so it’s crucial to weigh your options carefully. Fixed-rate mortgages provide a predetermined interest rate for a specific duration, whereas tracker and Standard Variable Rate mortgages are often connected to the Bank of England’s Base Rate and may fluctuate over time. A fixed-rate mortgage is ideal when rates are low – but you might want a variable rate when it looks as though rates may fall.

You can find out more about the various mortgage types, along with their advantages and drawbacks. The vast majority of new mortgage loans taken out in 2022 were on a fixed rate, accounting for about 95% of the market. This year is slightly different as rates have been rising. But by understanding the differences between mortgage products, you can select the one that best fits your financial objectives and constraints.

Your mortgage term

Along with the type of mortgage you choose, it’s essential to consider the mortgage term. This is the length of time required to repay the loan. Opting for a more extended mortgage term will result in lower monthly payments, but it also means that you will pay interest over an extended period. To help spread out the mortgage cost, most lenders offer longer terms ranging from 30 to 40 years or more, based on your age and circumstances. When you apply for a mortgage, you can choose the term that you think is most financially feasible for you. Carefully assessing your financial capacity and factoring in any foreseeable changes in your circumstances can help you determine the ideal mortgage term that aligns with your long-term financial objectives.

Affordability

While it may seem like common sense, it’s crucial to take the time to assess all your expenses and your comfort level with monthly mortgage payments. Careful financial planning can help ensure that you select a mortgage product that aligns with your budget and long-term financial objectives. By taking into account your current expenses and future goals, you can calculate the amount that you can comfortably allocate to your mortgage payment each month, helping you to make a more informed decision when choosing the right mortgage. By being mindful of your financial position and assessing your affordability, you can secure a mortgage product that meets your needs and enables you to achieve your long-term financial goals.

How much you can borrow

We can help you to assess how much you could borrow based on factors such as your income and deposit size. However, it’s important to remember that a mortgage lender’s decision to approve your loan application is based on several other factors beyond these inputs. Along with your income and deposit size, lenders will also evaluate your credit history, employment status, and monthly expenses to determine your eligibility and borrowing capacity. These factors help lenders assess your overall financial health and whether you can afford to repay the loan. To gain a more comprehensive understanding of how lenders evaluate your mortgage application, you can read more about their affordability assessments and loan approval criteria. By understanding these factors, you can prepare and present a strong mortgage application and increase your chances of securing the loan you need to purchase your dream home.

Mortgage in Principle

If you’re looking to purchase a property, whether alone or with someone else, you can apply for a Mortgage in Principle. While this is not a binding offer, it can provide valuable insight into how much a lender may be willing to lend you. It’s a useful first step in the mortgage application process, as it allows you to assess your borrowing potential and plan your property search accordingly.

After submitting your application, you’ll receive a personalised estimate of how much you could potentially borrow with a mortgage. This information is invaluable when it comes to budgeting and understanding your financial options. You should keep all of the associated paperwork safe and accessible, as you may need it when making a full mortgage application in the future. It’s important to note that applying for a Mortgage in Principle does not commit you to anything, and it won’t impact your credit score. You can read more about the difference between soft and hard credit checks here, to ensure you understand how credit checks work and their potential impact on your credit rating. Overall, taking the time to explore your mortgage options through a Mortgage in Principle can help you make informed decisions and ultimately secure the right mortgage for your needs.

Using a broker

While it’s possible to apply for a mortgage on your own, seeking the assistance of a mortgage broker or adviser can often help you get the best possible mortgage. These professionals have the expertise to provide impartial advice and can help you find the most suitable mortgage product for your situation.

They can scour the market for available options and offer guidance throughout the entire mortgage application process, which can be especially beneficial for first-time homebuyers or those who are unfamiliar with the process. Additionally, using a mortgage broker or adviser may save you time and potentially money by helping you avoid common pitfalls and finding the best rates available

The team at Hub Financial are uniquely placed as your broker to provide whole-of-market mortgage advice and our friendly, knowledgeable staff are here to talk you through all the variables to help you maximise your potential financial flexibility. We’re available 6 days a week and are ready and eager to help.

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If you would like to arrange an appointment to meet face-to-face with one of our advisors, or you would prefer to deal with us by telephone or email, please get in touch.

HUB Financial
38 Cadzow Street
Hamilton
ML3 6DG

e. info@hub-financial.co.uk
t. 01698 538 300

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FCA Regulatory Status

Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured on it.

The Financial Conduct Authority (FCA) does not regulate some aspects of buy to let mortgages.

HUB FINANCIAL LTD is an appointed representative of The Mortgage Hub Limited who are authorised and regulated by the Financial Conduct Authority (FCA).

Our Financial Services Register Number is 995547.  We are entered on the Financial Services Register No 460207 at https://register.fca.org.uk/

We are registered in Scotland NO. SC764315 Address: 38 Cadzow Street, Hamilton, United Kingdom, ML3 6DG.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

hub association

If you would like to arrange an appointment to meet face-to-face with one of our advisors, or you would prefer to deal with us by telephone or email, please get in touch.

HUB Financial
38 Cadzow Street
Hamilton
ML3 6DG

e. info@hub-financial.co.uk
t. 01698 538 300

Facebook Instagram

© HUB Financial 2023

Blog | Privacy | Cookies
Complaints | Contact Us

FCA Regulatory Status

Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured on it.
The Financial Conduct Authority (FCA) does not regulate some aspects of buy to let mortgages.
HUB FINANCIAL LTD is an appointed representative of The Mortgage Hub Limited who are authorised and regulated by the Financial Conduct Authority (FCA).
Our Financial Services Register Number is 995547.  We are entered on the Financial Services Register No 460207 at https://register.fca.org.uk/
We are registered in Scotland NO. SC764315 Address: 38 Cadzow Street, Hamilton, United Kingdom, ML3 6DG.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

Mortgages

Buying a new home is exciting and one of the most significant purchases you will make, so we want you to enjoy the experience and be happy with your decision. If you are looking to purchase your first home, move to a new property, re-mortgage your existing home, or purchase a buy-to-let property, we are here to assist and make the process as stress-free and efficient as possible.

The first step is to obtain a decision in principle for you. This ensures you will be approved for a mortgage subject to further checks. With unlimited access to the whole of the UK mortgage market, and a proven track record of acquiring mortgage approvals for the most complex of situations, we will then source the best possible mortgage deal to suit your individual needs and circumstances.

First-time buyers
Buying your very first property can be an incredibly daunting prospect. It’s hard to know where to start. That’s why we’re here to help and guide you through the entire process. We will provide tailored advice based on your current circumstances and future plans, ensuring that you are aware of all potential costs associated with buying and owning a property. We will then source the most suitable mortgage deal to suit your budget, objectives, and repayment preferences.

Re-mortgage
A re-mortgage is used by existing home owners for a number of reasons. They may wish to move to a new home, switch to a better more suitable mortgage deal for their current property, consolidate debts, or increase their borrowing to carry out home improvements.

You can re-mortgage with the same lender or with a new mortgage lender. Many mortgage deals come with a discounted interest rate for the first few years. When these end, it is common for homeowners to source a new deal that offers a lower interest rate, a new fixed rate or discounted interest rate.

If you are thinking about re-mortgaging your existing home, there are a number of important factors that must be taken into consideration to ensure it is the right time to switch mortgages and the best decision for you and your family in the long run.

For example, will the mortgage lender charge valuation and solicitor fees? Will your final repayment be higher or over a different period of time? Will you have to pay an early repayment charge on your current mortgage? These are the types of considerations we will look at carefully to ensure you get the very best mortgage deal.

Think carefully before securing other debts against your home or property. You may have to pay an early repayment charge to your existing lender if you re-mortgage.

Your home is at risk if you do not keep up repayments on your mortgage or other loan secured on it.  

Buy-to-let
If you’re considering purchasing a residential property as a buy-to-let investment, there are specific types of mortgages available that differ from standard residential mortgages. We will provide tailored advice and source the most suitable mortgage deal based on your deposit and whether your main aim is to acquire monthly rental income or achieve long-term capital growth.

Adverse credit history
Obtaining a mortgage when your credit history is less than perfect can be an obstacle, but it’s not impossible. It may affect how much you can borrow and the interest rates you are offered, but there are lenders who provide mortgages to home buyers with adverse credit. At The Mortgage Hub, we have an exceptional track record of helping clients who have faced financial difficulties secure a suitable mortgage deal that enables them to buy their new home.

Insurance

When acquiring a mortgage to purchase a new home or buy-to-let property, it’s important to protect not only yourself, but your investment. It is therefore essential to take out adequate insurance in the event of fire or floods, theft, accidental damage, illness or bereavement, unemployment, separation, or any other eventuality that could put your home at risk. We’ll look at your protection needs and tailor your cover to your lifestyle.

We can provide you with advice and competitive quotes on the types of policies that are relevant to your circumstances. We are an Exclusive Associate of Vitality; therefore we are tied to Vitality and only recommend their products, in the event of Vitality declining a client we can look at other providers. The most common types of insurance we advise for home owners and landlords include:

Buildings & Contents

Mortgage lenders insist that homeowners insure their properties with adequate buildings and contents cover. This type of policy will normally insure your residential home or buy-to-let property, (as well and fixtures, fittings and contents) against damage caused by fire or flooding, lightening and storms, subsidence, accidental damage, escape of water, theft and vandalism.

The policy you choose should be sufficient to cover the rebuild cost of your property. The best deal is usually acquired by taking out a joint buildings and contents insurance policy. However, if you buy a flat that is managed by a factor, you may find that buildings insurance is already in place for the entire apartment block. This is something we will check for you when you purchase your new property.

Life Insurance

Whilst most people insure their cars, homes and other valuable belongings, many don’t insure themselves. Life Insurance provides a valuable safety net for your family if the unthinkable should happen, helping them financially during a difficult time. Many policies include terminal illness benefit, too.

Critical Illness Cover

This type of policy aims to ensure you are financially protected against the impact that being diagnosed with a specific critical illness could have on you and your loved ones. It is common for this type of cover to be added to a life insurance policy.

Serious Illness Cover

Serious Illness Cover helps protect you financially if you fall ill. This will pay you out a cash lump sum based on the severity of your condition – meaning that you can focus all your energies on making a full recovery.

Unlike typical critical illness cover, this pays out for the less severe conditions as well as the more critical ones. So if you get ill and need to claim, this insurance will give you a percentage of your cover depending on how severe your condition is. This means that if a condition gets caught early on, the insurance provider will pay out a portion to alleviate the stress, but you’ll also have the rest of your cover should you need to claim again and again.

Income Protection

Most homeowners would find it difficult to cover their mortgage payments if they were unable to work. We never like to imagine that we’ll face ill health or accidental injury, but it’s important to protect yourself and your home just in case. An Income Protection insurance policy may be affordable and is intended to provide income to help replace any lost earnings as a result of illness or injury.

Redundancy & Unemployment Cover

This type of policy provides short-term income protection, usually for up to 12 months, if you are unable to work as a result of involuntary redundancy. Some income protection policies also combine sickness and accident cover, as well as unemployment.

Landlords’ Insurance

If you purchase a buy-to-let property, a standard home insurance policy may not provide sufficient cover. Landlords’ Insurance is usually the best choice. This type of policy usually includes buildings insurance, but it could also cover things like loss of rent, compensation claims from tenants, legal cover, loss of income if your property is damaged, and property owner’s public liability.

Some insurance covers are based on an assessment of the health of the applicant. Most insurance companies are unlikely to cover previous or existing medical conditions, customers should always refer to policy documentation and seek advice in order to understand what the policy does and does not cover before making an application. You should never cancel any existing insurance policies without seeking advice and ensuring you are adequately covered and on risk with any new policies you set up. 

Our Services

At Hub Financial, we provide impartial advice on every type of mortgage for every type of client, including first-time buyers, existing home owners looking to remortgage, buy-to-let investors, and customers with adverse credit. With extensive knowledge of the complex mortgage market, and established relationships with all leading UK mortgage lenders, we have access to the whole market and are able to source and secure the most competitive mortgage deals for even the most complicated and delicate of client circumstances.

To ensure everything runs smoothly from start to finish, our team of experienced mortgage advisors can also help you to find your next home or investment property. We will arrange property viewings on your behalf, provide feedback to estate agents and sellers, handle all negotiations on your new property to secure the best price on your investment, provide advice on Home Report surveys, and arrange a reputable solicitor to finalise the sale of your home and/or purchase of your new property.

When you buy a new property, it’s critical that you take measures to protect yourself and your investment as much as possible in the event of illness, unemployment, separation, or any other significant change in circumstances. In addition to our mortgage services, we can provide advice and competitive quotes on the various types of insurance you may require as a home owner or buy-to-let landlord.

In addition to essential Buildings and Contents cover, the most common types of insurance policies you may wish to consider are Life Insurance, Critical Illness, Income Protection, Redundancy & Unemployment, and Landlords’ Insurance. If you’re not sure what you need or what these policies cover, we will provide you with all of the required information to help you make an informed decision on what’s best for you and your family

Your home or property may be repossessed if you do not keep up repayments on your mortgage

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