Mortgage FAQs

You will have a better chance by using a mortgage broker, because all lenders have different criteria and offer different rates - criteria is what we specialise in. Lenders generally look at how much you wish to borrow, your deposit, employment status and income, credit history, existing debt, your age, the term, and whether you are applying alone or with a partner. The lender also runs their own credit check covering roughly the last six years. If you have a poor credit history, don't worry - we are adverse credit specialists, and this is what we do best.

A decision in principle is also known as a mortgage in principle or an agreement in principle. It gives you an informed indication of what a lender is prepared to let you borrow after their initial credit searches, and indicates they are happy to proceed having looked at your credit history. Most estate agents ask to see one before viewings, so it is a good idea to get this early. We can usually provide a decision in principle the same day.

The loan to value is the amount of mortgage required compared to the purchase price, shown as a percentage. If a property is £100,000 and you have a £10,000 deposit, that is a 90% LTV. Rates improve the lower the loan to value: a 25% deposit carries less lender risk than 10%, and pricing reflects that.

With a fixed rate, your monthly payment stays the same for the agreed period - usually 2, 3, 5 or 10 years - which helps with budgeting, though payments do not fall if the Bank of England base rate falls, and early repayment charges usually apply in the fixed period. Variable and tracker rates move with the base rate: you benefit when it falls and pay more when it rises.

The base rate is the interest rate banks and lenders pay when they borrow from the Bank of England. It is the most important interest rate in the UK because it influences mortgages, savings, credit cards, loans and virtually all borrowing.

Generally mortgages run to a maximum term of 35 years, with some lenders going to 40. The longer the term, the more interest you pay overall - getting that balance right for you is part of the conversation.

If you are weighing up whether to use your bank or a broker, we compare the two there. A specialist adviser has direct access to lenders able to accept excessive debt, missed or late payments, defaults, CCJs, debt management plans, IVAs and even bankruptcy. Bad credit is not unusual and we do not judge. The worst thing you can do with bad credit is let a non-specialist fire applications at lots of lenders - every failed attempt damages your score. A specialist identifies the lenders whose criteria fit before anything is submitted.

Often, yes, though there are fewer lenders and the rate is usually higher than for a clean file. What lenders weigh, problem by problem, is in can you get a mortgage with bad credit?

It depends on the lender and the detail: some specialist lenders will look at a recent CCJ or default, while high street lenders usually want a longer clear record. The timescales are in how long after bad credit you can get a mortgage, and for CCJs on mortgage with a CCJ.

Missed payments, defaults, CCJs and every credit agreement you hold are recorded on your credit report - and excessive borrowing counts against you even if you repay on time. Every UK lender runs a credit search, and most have an internal score you must pass. If you have been turned down elsewhere, do not panic: matching your circumstances to a lender's criteria is exactly what a specialist adviser does.

We assess your credit history and advise as part of the service, but the quick wins: set up direct debits for every bill; avoid taking out credit purely to build a score; pay down balances that sit near their limits; and go through your bank statements honestly - subscriptions, click-spending and quick stops add up in ways lenders notice.

A general broker tends to deal in volume with quick turnarounds, looking for clean credit and straightforward cases - and may submit your application to several lenders in hope. A specialist takes fewer clients, spends longer on the background, scrutinises the credit history, income and statements, and does not submit until everything the lender will ask is already answered. With bad credit, that preparation is the difference.