Mortgages

Can you have two mortgages?

Aimee Dagnall | Mortgage & Protection Advisor

Updated 24, March 2025

Can you have two mortgages? What are the legalities?

This is a common scenario if someone has a personal mortgage and wants a second for an investment or second property.

In this guide, we will discuss a range of reasons why a person would opt for multiple mortgages, the rules regarding taking on more than one mortgage and the financial options available for additional borrowing.

How many mortgages can I have?

In the UK there are no laws restricting a person from taking on multiple mortgages, however individual lending criteria may cause some hurdles, following obtaining the first few mortgages!

Typically, a borrower would have an initial residential mortgage for their own family property, and then any additional mortgages would be on a buy to let basis.

However, there is nothing stopping an individual or couple from obtaining multiple residential mortgages, although proof that the borrower is intending on residing in both properties would be needed.

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More often than not, the buy to let route is used where the borrower would seek to rent out the subsequent properties, acting as a landlord and build a property portfolio.

Upon each mortgage application, an applicant would need to fulfil the lending criteria on its own merit, including passing affordability and credit checks.

Income would need to be proven to ensure that as each subsequent loan is requested, that the monthly repayments can be made.

Therefore, each time an additional mortgage application is made, the monthly commitments accumulate for the borrower and consequently it is rare for anyone to have more than four mortgages at any one time!

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Types of Mortgages

As we have already briefly discussed, there are two types of a mortgage; a residential mortgage and a business type mortgage product such as a buy to let mortgage. Let’s explore the differences between the two mortgage types.

What is a Residential Mortgage?

A residential or standard mortgage is the most common type of secured mortgage product and enables individuals or couples to take out a long-term loan for the purpose of purchasing a property to live in.

Typically, a residential mortgage would require the applicant to have a cash deposit of between 10 and 30% of the property value.

Monthly repayments are made against the loan for the duration of the mortgage term, which is typically around 25 years.

There are two types of standard mortgage repayment methods; full repayments which combine repaying the capital loan and the interest due, or interest only which results in lower monthly repayments however the mortgage capital does not get repaid.

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Interest is applicable against the money owed and often charged as an annual percentage, in a range of methods as follows:

Fixed-rate – Provides a fixed monthly repayment each month by securing the interest rate linked to the mortgage for a set period of time, often between 2 and 5 years.
Standard variable rate – This is a long-term interest rate, often applied after a fixed rate ends or following an introductory offer. The interest rate fluctuates each month at a rate set by the lender and therefore will vary the mortgage repayment due.
Tracker – A tracker rate follows the Bank of England base rate at a set percentage higher and will vary from month to month.

A property can be let out with a standard mortgage still outstanding however permission would usually need to be sought from the mortgage lender. However, it is more common for the mortgage type to be changed from a standard mortgage to a buy to let mortgage when renting out a property.

What is a Buy to Let Mortgage?

A buy to let mortgage is a financial mortgage product that is specifically for the purpose of renting out a property, and not living within it.

Buy to let mortgages commonly require higher deposits levels than standard mortgages, of between 25% and 40% loan to value rate.

In addition, buy to let mortgages can sometimes have higher interest rates attributed to them compared with standard residential mortgages, plus there are often arrangement fees due of up to 3.5% of the property’s value to consider as well.

Similar to standard mortgages, there are two options regarding the monthly repayments; full payments and interest only.

Most landlords seek interest-only mortgages, to keep the monthly repayments down, leaving the capital balance payable at the end of the mortgage term when landlords would either re-mortgage or sell the property to repay the capital.

Interest-only mortgages carry higher risks for the lender and therefore will usually have higher interest rates.

What is a Bridging Loan?

Another way of obtaining multiple borrowings is the use of a bridging loan.

A bridging loan is a method of short term secured finance that can fund a property purchase whilst the sale of other assets is still in progress.

A bridging loan can facilitate a property transaction without delay by applying owned equity within a current property as a deposit towards another property. The result of which is that the mortgage holder owns multiple properties while further transactions are proceeding.

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What other considerations are there for landlords?

If the purpose of the additional borrowing is to become a landlord and rent out properties, there are lots of things to consider in addition to the type of mortgage, this includes:

Insurances
Maintenance costs of the property
Legal responsibilities of being a landlord such as energy efficiency of the property
Health and safety responsibilities
Ensuring you comply with legislation such as the Tenant Fees Act and Tenancy Deposit Schemes

Becoming a landlord is a big decision and therefore sufficient research and consideration of all of the factors including legislation and costs should be undertaken.

Can you have Two Mortgages Summary

As we have seen, it is possible to obtain multiple mortgages, however, the purpose behind the additional borrowing usually dictates the type of finance needed

Our specialised team can assist with advising the most appropriate borrowing method for your specific requirements as well as provide guidance in relation to becoming a landlord. Book an appointment to speak to a member of our friendly team today!

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

Further reading:

Mortgages

Proof of Deposit for a Mortgage

John Chivers | Mortgage & Protection Advisor

Updated 24, March 2025

Proof of deposit for a mortgage is an essential part of the application process and commonly a deposit of between 10 and 30% of the property value is needed to obtain a mortgage.

Most prospective borrowers believe that deposits must be funded solely by personal savings, but this is not the case, although the source of the deposit will need to be proven to the lender during the mortgage application process.

In this guide, we will explore the acceptable sources of mortgage deposits and the method of proving the source of the money and the reasons why this step is undertaken.

Why must a mortgage applicant prove where a deposit comes from?

Anti-money laundering or AML regulations came into force in 2017, with the aim of stopping criminals using professional services to launder money within the UK.

UK law stipulates that prospective mortgage applicants must provide proof of identity, proof of address and to provide details of the source of the deposit to comply with anti-money laundering regulations.

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Both lenders and solicitors’ must adhere to the regulations and assess the risks of the source of funds being from legitimate legal sources, and therefore mortgage applicants are asked to provide sufficient evidence of the source of funds.

Evidence can include bank account statements for savings accounts or signed contractual agreements depending on the method of obtaining a deposit.

Lenders will have criteria stipulating the approved sources, and should an application not meet the requirements, an application would be declined.

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What are the approved mortgage deposit sources within the UK?

Each lender will set their own criteria regarding acceptable sources of deposits and therefore it is always worth checking the requirements before making a mortgage application.

However, there are some universally accepted deposits within the UK and these include the following:

Personal savings

Mortgage lenders are always willing to accept deposits funded by the applicant’s personal savings however they may seek proof that the savings balance has grown over time, which can usually be provided by submitting saving account bank statements.

The sale of property

Similarly, proceeds from a sale of property that was previously owned by the applicant are also widely accepted as sources of deposits with mortgage lenders. The proof of the sale of the property can usually be provided by legal documents and bank statements showing the sale transaction.

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Equity released from another property

Should an applicant be in the position to own a second home, for example, equity could be released to act as the deposit on another mortgage?

This is often proven via property valuations being undertaken and specific mortgage products may be required should a property already be owned.

Inheritance

Inheriting money via a will is a common source of deposit and therefore is widely accepted. The proof of the source of funds is usually obtained via a signed document from the executor of the will, along with bank accounts showing the inherited money entering the applicant’s account.

The following sources of a deposit may be accepted by some lenders, however other lenders may not and therefore it is worth checking before making a mortgage application.

Sale of assets

The sale of assets other than property, such as cars, boats, works of art, coins or other valuable memorabilia that have been legally sold could be an acceptable source of funds for a deposit, however, it would depend on the lender.

Gifts

A gifted cash deposit can be an acceptable source of funds for certain lenders however often it would depend on who provided the gift.

If the gift was provided by immediate close family most lenders may accept this, however, a gift from a more distant family member, or family that are not blood-related could problematic.

The proof of a gift could be a signed legal agreement documenting the parties involved and the value of the gift. Meanwhile, gifts from friends are even less likely to be accepted as an approved deposit with lenders.

Gambling winnings

Funds received from gambling winnings are sometimes accepted by certain lenders, however, the level of funds and the frequency of gambling may be a concern for mortgage lenders.

In addition, income from gambling is not deemed an approved source of income and therefore any such income would likely be removed from an application, which could impact passing the lender’s affordability checks.

However, if a one-off large sum of money has been won, for example, a lottery win, some mortgage lenders will accept this with proof of where the money was won and the total value. Cash winnings are therefore more difficult to trace and could raise warnings to mortgage lenders.

Oversea savings

Lenders are likely to be nervous in relation to savings held overseas as the sources of which can be difficult to trace, and therefore this may restrict the number of lenders willing to accept a mortgage deposit financed in this way. One approach may be to utilise a worldwide respected and established bank so that the finances can be legally traced.

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What mortgage deposit sources are not acceptable within the UK?

There are a number of financial sources that are not deemed acceptable with mortgage lenders as follows:

Unsecured borrowing

Most lenders will not accept a mortgage application with lending as the source of a deposit as this will impact the affordability of the applicant as both the mortgage and the deposit borrowing would need to be repaid each month, increasing the risks to the lender of a defaulted mortgage.

Cash

Due to traceability concerns, a cash deposit is not acceptable with most mortgage lenders. Most professional services will not take cash as a payment method due to the concerns of money laundering and therefore if you have obtained a large amount of cash it would be best to seek legal advice regarding the options available before applying for a mortgage.

Proof of Deposit for a Mortgage

We have explored the reasons why the sources of funds are tracked, as well as discussing acceptable common sources of mortgage deposits.

Should you have any queries regarding your personal financial situation including the eligibility of a deposit, please get in touch with our friendly team for further independent financial advice.

Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.

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Mortgages

How much do I need to earn to get a mortgage of £250,000? UK

Chris Taylor | Mortgage & Protection Advisor

Updated 24, March 2025

How much do I need to earn to get a mortgage of £250,000? And what should you expect the repayment terms to be?

Property prices have fluctuated over recent years however the overall trend tends to be a positive increase.

Higher house prices may be the result of the supply and demand of available property within an area, the reputation of an area improving or local investments resulting in an increase in amenities.

All of which in turn often results in higher value mortgages being required for potential buyers.

In this guide, we will explore the higher lending options available on the financial market including mortgages for £250,000 and above, as well as the application criteria and the process of how to access the financial products.

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How much do I need to earn to get a £250,000 mortgage?

Like other financial product applications, there are borrowing criteria set by each lender.

The mortgage application and underwriting process are the same for higher value mortgages as it is with other mortgages, however, lenders may wish to undertake further due diligence and checks due to the increased level of risk involved.

How much you’ll be able to borrow is dependant on a variety of factors, which include:

Source of income
Loan-to-income ratio
Loan-to-value ratio
Affordability
Credit history
Age

Source of Income

An applicant’s income level as well as the consistency of income will need to be reviewed by a potential lender.

Proof of income will be required to be submitted via documentation such as payslips and P60s.

Lenders will often be keen to accept mortgages applied for by professionals who are deemed to be high earning and in secure roles.

In addition, mortgage lenders will look favourably at applicants who are in permanent employment as opposed to a temporary contract and therefore this is worth considering ahead of making an application.

This means that if you are self-employed or on a temporary contract you may have more difficulty, especially with traditional high street lenders.

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loan-to-income ratio

The loan-to-income ratio is the total size of your mortgage loan vs your annual income. At present, the maximum amount you can borrow is around 4 times your annual income. However, in some cases, they may offer more or in other cases less than this amount.

Having this figure in mind can be helpful, but lenders typically use other factors to judge your application too, for example, the loan-to-value ratio and your affordability.

loan-to-value ratio

The loan to value ratio is basically the size of your mortgage balanced against the value of the property you want to purchase. This term is often explained as a percentage.

For example: If your mortgage was £100,00 against a £125,000 house or property then the LTV ratio is 80%. The remaining £25,000 is made up by the deposit.

Typically, lenders will be ok offering around 80% mortgages, therefore, if you have enough deposit to cover around 20% of the property cost, you should be able to borrow up to 4.5 times your annual income.

However, other factors are still considered, including affordability.

Affordability

The lender will want to know you can truly afford your repayments, even when major changes occur, such as inflation of bills and interest rate rises.

As a result, lenders will assess your current expenses and outgoings to determine your affordability.

It’s a wise idea to reduce your non-essential spending months ahead of making a mortgage application. This is probably the case anyway if you have been saving a deposit.

Also, see how much you can reduce your essential spending – for example, try doing your shopping at cheaper places.

If you can demonstrate that you can easily cover your monthly outgoings and make your mortgage payments you should be able to borrow the amount you want.

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Other factors that affect getting a £250,000 mortgage

Here are some other common factors that are considered when determining whether you can borrow a mortgage of 4.5 times your annual income or not:

Monthly Expenditure – An applicant’s typical monthly expenditure will also be analysed during the process of reviewing a mortgage application through the submission of bank statements. This process is to ensure that affordability checks can be undertaken, ensuring that the mortgage repayments are manageable. It is worth noting that certain types of transactions can raise alarm with potential lenders such as debt repayments to multiple credit cards or store accounts, as well as gambling payments.
The size of the deposit – The value of the deposit to be put down against the total property cost will calculate the loan to value percentage of the mortgage application. Lenders will consider applicants with a higher deposit as more favourable as this will reduce the risks of lending.
An applicant’s financial history and current credit score – The applicant’s credit history will impact the outcome of a mortgage application as well as the current credit score. Bankruptcy, CCJ’s or missed loan repayments will severely impact a credit score for many years and therefore should there be any concerns regarding your history of managing your personal finances, it would be worth discussing matters with a mortgage advisor ahead of an application.
The property details – The property’s value and condition will be assessed during the mortgage application process via a property valuation. There are some types of properties that lenders will not provide finance for and therefore if there are any concerns regarding the condition of the property, it would be worth investigating these before progressing with an application.
The type of mortgage desired – There are an array of mortgage options available on the market and therefore ahead of an application it would be worth researching what would be most suitable. A mortgage advisor can assist you with this.

What are the income levels required to obtain a 250,000 mortgage?

This can vary from lender to lender as lending criteria and income multiples can vary, but as mentioned previously typically, lenders will be ok offering around 80% mortgages, therefore, if you have enough deposit to cover around 20% of the property cost, you should be able to borrow up to 4.5 times your annual income.

In certain circumstances, a mortgage advisor may be able to access higher Loan to Income mortgages. Therefore, should your income not meet the current set multipliers resulting in the mortgage value needed, it maybe be beneficial to approach a specialist mortgage advisor.

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What will a 250k mortgage cost me?

The cost of your mortgage repayments will vary depending on a variety of factors including the interest rate, your repayment period and the amount of deposit provided.

What kind of mortgages are available?

A fixed-rate mortgage means that your repayments will be the same for the entire term e.g. 2 to 5 years typically.

If you are on a variable rate mortgage then your interest rate may change.

How long will the mortgage period be?

The most common repayment period is 25 years, but it’s possible to secure a longer or shorter repayment term.

A longer repayment term usually translates to lower monthly repayments, since it means you have a longer period of time to pay back the loan. That also means you will be paying back a greater amount in total.

Can I obtain a £250,000 mortgage with a deposit of 5%?

Although a higher value mortgage with a low deposit may be harder to find on the open financial market, there will be a handful of lenders that will be willing to consider lending at 95% of the property value, or loan to value rate.

In such situations, it would be highly recommended that a mortgage advisor is approached to assist with finding appropriate lenders as well as seeking the most favourable mortgage terms.

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Can I get a mortgage for £250,000 summary

Higher value mortgages i.e. a 250,000 mortgage are more common these days due to the increases seen within property prices over recent years. As discussed, there are strict criteria that will need to be met before a lender would agree to offer high-value mortgages.

As with any financial decision, it is highly recommended to seek mortgage advice before making a commitment, ensuring that all terms and conditions are fully understood.

Independent advisors will also have access to the whole of the market, rather than just high street lenders and therefore will often be able to compare a wide range of options across an array of lenders.

It is worth noting that all secured lending will have consequences to owned assets if the repayments are not kept up. These include, but are not limited to, an impact on a person’s credit score and in worst cases, repossession.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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Mortgages

Mobile Home Mortgages

Colin Prunty | Mortgage & Protection Advisor

Updated 24, March 2025

Can you get a mortgage on a mobile home or caravan?

Unfortunately not, but it’s not all bad news, as there are other means of financing the purchase of a new mobile home.

Traditional mortgages are not suitable for every property type including mobile homes and therefore specific home loans will be needed.

Mobile homes are very appealing for many and therefore different financing options are available for this market of home buyers.

In this guide, we will be exploring the world of mobile homes including the residency rules and financing options.

What is the definition of a Mobile Home?

Mobile homes or static homes is a prefabricated structure that has been built or redesigned for human residence purposes and can be moved between locations.

The nature of mobile homes enables them to be flexible uses, either placed in situ for emergency purposes, or for temporary or permanent housing needs.

Need more help? Check our quick help guides:

What are the Residency Rules of Mobile Homes?

There are an array of residency rules in relation to mobile homes, some of which are localised as are set by local councils. Most councils do not allow the permanent residency of mobile homes, and therefore typically, holiday park sites are closed for a least six weeks every winter, therefore preventing owners to inhabit their mobile homes all year round. This rule can vary between local authorities though and therefore it is worth double-checking should you be interested in purchasing a mobile home.

For access all year round, it is likely that the mobile home will need to be located either on land that is owned, with any permission requirements requested from the local council.

Some circumstances where a local council may grant permission for a mobile home (which meets the legal definition of a caravan in size and construction format) to be resided in on private land are as follows:

Where the mobile home will be located on a drive or garden.
Where the occupant of the mobile home is also permitted to occupy the house on the land, for example, the mobile home is not let out separately as a private residence.

An exception to these rules is if a homeowner is undertaking a self-build project and therefore wishes to live in a caravan on their land during the building project.

How much do Mobile Homes Cost?

Like properties made from bricks and mortar; the prices range of mobile homes dependant on the size, condition and age of the home. Typically, mobile homes are drastically cheaper than in traditional homes.

As traditional mortgages cannot be obtained on mobile homes, one benefit is that the purchase costs are cheaper than a traditional property as valuations and solicitor fees are unlikely to be necessary. In addition, property tax is generally not payable when purchasing a mobile home.

Related guides:

What are the Positives and Negatives of Owning a Mobile Home?

Choosing to purchase a mobile home may be something that you’ve been pondering for a while, however, as with any large financial decision, there are many factors to consider. Here are a few of the positives and negatives of owning a mobile home:

Positives:

Owning a mobile home can provide a community-based life experience, especially if a park site is chosen. Park site-based living may also include community experiences on-site such as pools, fitness centres and event schedules.
The costs of obtaining a mobile home property are generally significantly cheaper than owning a traditional bricks-built home.
Depending on the type of mobile home, there may be opportunities to move the home to a new location as required. The freedom to move is a highly desirable element of mobile home life!
Typically, the running costs of a mobile home can be significantly cheaper than other property types. However, the energy costs do vary depending on the type of energy installed into the mobile home.
Maintenance costs can be cheaper for mobile homes compared with brick-built homes due to the size and nature of the property. In addition, the plot sizes tend to be smaller and therefore garden maintenance can also be lower.
Site locations can offer the costs of amenities combined into the land rental fees such as water, refuse and recycling. This can streamline expenses and keep running costs down.

Related guides:

Negatives:

Although traditional property prices fluctuate, the overall trend tends to be positive, whereas the value of a mobile home depreciates over time. This is important to note especially if considering purchasing a mobile home as an investment.
The living space can be fairly small in mobile homes and therefore the transition from a larger property can sometimes be a challenge.
Financing options to purchase a mobile home can be reduced, however are still possible.
Depending on the site location, there can be changes in ownership which can impact the conditions of living there. This scenario can often happen with park sites should an owner sell up for example.
Selling a mobile home can be more challenging than selling a traditional home.

Other Considerations:

As briefly mentioned, the location of where the mobile home will be situated is key for financial, residency and lifestyle purposes. If park living is preferred, be aware that some parks may have age restrictions to reside on-site.

Can Mortgages be Obtained for Mobile Homes on Park Sites?

Mortgages are not available on park homes due to land registry issues. Typically standard mortgages are applicable against the land that a property has been built upon, however with park homes, they are very rarely registered with the UK land Registry, and are therefore not applicable as the park owner owns the land whereas the mobile homeowners lease the plot of land to locate their home.

Land Mortgages

As discussed above, the concern for mortgage lenders is due to the land registry. If the land that you are wishing to locate a mobile home on is available to purchase, a land mortgage may be the solution.

There are many lenders that can provide a mortgage on land, however, the number may be reduced for the purpose of residing in a mobile home on site. Should you find yourself in this scenario, please get in touch with our amazing team who can provide assistance with sourcing land mortgages.

Mobile home mortgages and loans summary

Mobile home living can provide a community lifestyle, reduced living costs and freedom to relocate, however, there are considerations to review such as the financing options and other expenses such as fees payable to the site.

Should you be considering the purchase of a mobile home and require finance please do get in touch to enable us to source some suitable options.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Further reading:

Mortgages

Mobile Home & Static Caravan Mortgages UK

Colin Prunty | Mortgage & Protection Advisor

Updated 24, March 2025

Can you get a mortgage on a mobile home or static caravan in the UK?

Unfortunately not, but it’s not all bad news, as there are other means of financing the purchase of a new mobile home.

Traditional mortgages are not suitable for every property type including mobile homes and therefore specific home loans will be needed.

Mobile homes are very appealing for many and therefore different financing options are available for this market of home buyers.

In this guide, we will be exploring the world of mobile homes including the residency rules and financing options.

What is the definition of a Mobile Home?

Mobile homes or static homes is a prefabricated structure that has been built or redesigned for human residence purposes and can be moved between locations.

The nature of mobile homes enables them to be flexible uses, either placed in situ for emergency purposes, or for temporary or permanent housing needs.

Need more help? Check our quick help guides:

What are the Residency Rules of Mobile Homes?

There are an array of residency rules in relation to mobile homes, some of which are localised as are set by local councils.

Most councils do not allow the permanent residency of mobile homes, and therefore typically, holiday park sites are closed for a least six weeks every winter, therefore preventing owners to inhabit their mobile homes all year round.

This rule can vary between local authorities though and therefore it is worth double-checking should you be interested in purchasing a mobile home.

For access all year round, it is likely that the mobile home will need to be located either on land that is owned, with any permission requirements requested from the local council.

Where the mobile home will be located on a drive or garden.
Where the occupant of the mobile home is also permitted to occupy the house on the land, for example, the mobile home is not let out separately as a private residence.

An exception to these rules is if a homeowner is undertaking a self-build project and therefore wishes to live in a caravan on their land during the building project.

How much do Mobile Homes Cost?

In addition, property tax is generally not payable when purchasing a mobile home.

Related guides:

What are the Positives and Negatives of Owning a Mobile Home?

Choosing to purchase a mobile home may be something that you’ve been pondering for a while, however, as with any large financial decision, there are many factors to consider.

Here are a few of the positives and negatives of owning a mobile home:

Positives:

Owning a mobile home can provide a community-based life experience, especially if a park site is chosen. Park site-based living may also include community experiences on-site such as pools, fitness centres and event schedules.
The costs of obtaining a mobile home property are generally significantly cheaper than owning a traditional bricks-built home.
Depending on the type of mobile home, there may be opportunities to move the home to a new location as required. The freedom to move is a highly desirable element of mobile home life!
Typically, the running costs of a mobile home can be significantly cheaper than other property types. However, the energy costs do vary depending on the type of energy installed into the mobile home.
Maintenance costs can be cheaper for mobile homes compared with brick-built homes due to the size and nature of the property. In addition, the plot sizes tend to be smaller and therefore garden maintenance can also be lower.
Site locations can offer the costs of amenities combined into the land rental fees such as water, refuse and recycling. This can streamline expenses and keep running costs down.

Related guides:

Negatives:

Although traditional property prices fluctuate, the overall trend tends to be positive, whereas the value of a mobile home depreciates over time. This is important to note especially if considering purchasing a mobile home as an investment.
The living space can be fairly small in mobile homes and therefore the transition from a larger property can sometimes be a challenge.
Financing options to purchase a mobile home can be reduced, however are still possible.
Depending on the site location, there can be changes in ownership which can impact the conditions of living there. This scenario can often happen with park sites should an owner sell up for example.
Selling a mobile home can be more challenging than selling a traditional home.

Other Considerations:

As briefly mentioned, the location of where the mobile home will be situated is key for financial, residency and lifestyle purposes. If park living is preferred, be aware that some parks may have age restrictions to reside on-site.

Can Mortgages be Obtained for Mobile Homes on Park Sites?

Mortgages are not available on park homes due to land registry issues. Typically standard mortgages are applicable against the land that a property has been built upon.

However with park homes, they are very rarely registered with the UK land Registry, and are therefore not applicable as the park owner owns the land whereas the mobile homeowners lease the plot of land to locate their home.

Land Mortgages

There are many lenders that can provide a mortgage on land, however, the number may be reduced for the purpose of residing in a mobile home on site.

Should you find yourself in this scenario, please get in touch with our amazing team who can provide assistance with sourcing land mortgages.

Mobile home mortgages and loans summary

Should you be considering the purchase of a mobile home and require finance please do get in touch to enable us to source some suitable options.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Further reading:

Mortgages

Converting a House into Flats – How to Fund It

Barbara Wohlert | Mortgage & Protection Advisor

Updated 24, March 2025

You may have been researching a property to purchase for letting out, but the thought of undertaking some developments to convert the property into flats has been crossing your mind.

Or perhaps, you are seeking to convert a currently owned property into flats for the purpose of selling them on for a profit.

Either way, this article will guide you through the process of turning a house into flats, including the financing options and further considerations to be aware of.

Undertaking Market Research

As with any business decision, plenty of market research should be undertaken to establish who is the target audience of the product, in this case, the tenants or purchasers of the flats, as well as further research into the current market conditions.

The research should include taking time to understand the local area, including the current or planned local facilities such as university campus’ or transport links into cities or towns which are ideal for young professional commuters.

In addition to the local facilities, the area demographics should be reviewed, ensuring that there is evidence of typical flat tenants or owners.

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To establish a picture of the current market conditions recent local selling statistics could be reviewed including investigating the duration of time that properties are on the market before selling. In addition, it would be recommended to establish which type of properties are currently in demand.

Once all of the wider elements have been reviewed, thoughts can turn to the property itself, planning the conversion such as the layout of rooms and corridors, ensuring that health and safety can be met and also that the property facilities will suffice additional habitants.

It is essential that extensive market research is undertaken prior to committing to development, to ensure that the project is viable and is forecast to generate a profit.

Costs of Converting the Property

Often the costs of renovations will vary dramatically between one conversion project and another however as a very rough guide, if the current property is structurally sound with existing kitchen and bathroom facilities, typical costs of converting a house into flats could be between £15-£25k.

As mentioned, project costs will vary greatly depending on a wide range of factors including the condition of the property itself, plus external factors that can impact during a conversion.

When drafting a business plan for such a conversion project, the following elements should be considered and cost to establish a project’s estimated profit:

The cost and time duration of planning consent – Costs will include obtaining architectural drawings, any property surveys that may need to take place, submission costs of the planning application to the local council plus the cost of financing the project during the planning phase.
Building regulation approval – Similar to planning consent, there will be costs involved to meet and document that building standards have been met as well as the costs of submission.
Costs of fitting individual utility meters, boilers and heating systems– Each unit will require its own heating system and utility meter for each provision.
Costs of fitting out each individual unit with kitchen and bathroom facilities – Each flat will require such facilities to make the space habitable, however, the costs of such will vary depending on the quality chosen.
Cost of installing additional entrances and separating the building into flats – There will be costs applicable to rearranging the layout of the property, reconfiguring corridors, separating rooms and adding additional entrances for each of the individual flats. The layout will also need to consider fire safety regulations.
The Costs of re-decorating – There will also be costs of redecorating the property following the separating the space into units, such as plastering and painting.
The Costs of financing the development – In addition to the interest costs of borrowing money, there could be arrangement fees and exit fees depending on the type of finance opted for.

In addition to the costs listed above, there will likely be extra costs during the development phase such as paying the utilities for the property and council tax, unless exemptions are applicable.

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Also, depending on whether the flats are due to be let or sold, there will be additional costs involved. Selling costs will involve marketing costs and agent fees, whereas letting the properties will incur charges to undertake tenant checks and set up tenancy documents.

Should a letting agent be used to minimise the ongoing burden of administration, the letting agent fees should also be considered.

Obviously, all of the above expenses are to be reviewed and estimated for the project scale to create a thorough business plan to enable a property development project to be fully considered before committing to a project.

Sourcing Finance for Converting Property

Due to the nature of any conversion project, a simple residential mortgage would not be suitable and therefore specific finance for such projects must be sought.

Specialised development finance would be needed, which is a type of financial product that can enable both the purchase and development of the property. There are many different financial products available on the market which would be suitable for conversion products depending on a number of factors such as;

The personal circumstances of the applicant.
The plan for the property once developed such as retaining the property to let or selling. Such plans will also provide a guide of how long the borrowing is required for.
The scale of the project.

Various types of financial products will be available such as short-term refurbishment mortgages or bridging loans, or longer-term mortgages for specific requirements such as an HMO mortgage which would be sought should the property be retained to rent out to multiple occupants.

Although there may be some high street lenders offering suitable financing options, typically for more specialised finance and to obtain the most competitive rates it would be worth considering approaching an experienced financial broker.

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Converting a House to Flats Summary

There are many considerations to review when planning to convert a property into flats however our friendly, expert team can help guide you through the process and advise on the most suitable finance options along the way.

Why not book a personalised appointment with our amazing team, no matter which stage of the conversion process you are currently, to see if we can help in any way.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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Mortgages

Buy to Sell Mortgages – Short term Mortgages to Sell Property

Barbara Wohlert | Mortgage & Protection Advisor

Updated 21, March 2025

Landlords are continuously faced with adjusting to changing legislation within the rental sector as well as tax legislation developments, meanwhile managing their own finances with the objective of making a profit from their property portfolio.

The type of mortgage used to fund property purchases is key to the profitability of a landlord’s business and therefore throughout this guide will explore the buy to sell mortgages.

What is a buy to sell Mortgage?

Buy to sell mortgages, sometimes known as bridging loans, are a short-term financial product to enable the purchase of a property, that you will sell before the end of the agreement.

One of the main benefits of opting for a buy to sell mortgage, is the flexibility offered, as with a standard mortgage an investor could be locked in for a specified duration as well as being liable for early settlement fees.

Therefore, this type of finance option is popular with investors seeking to make a profit from purchasing and selling on properties.

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Buy to sell mortgages are not usually available from traditional high street lenders, however, on the odd occasion that they do offer such financial products, the interest rates and fees may be higher than a standard mortgage.

Therefore, a specialised mortgage broker is often sought to access a wide range of deals available on the market and seek the most competitive rates.

However, like most financial decisions, the most suitable product will depend on an individual’s circumstances and plans for the property, including how long they intend on owning it before the sale.

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Options available for buy to sell Mortgages

There are three common types of finance options under the umbrella term of a buy to sell mortgage. These are as follows:

Buy to sell short term loan

If the turnaround time of a property purchase and sale is expected to be very short term, under 12 months, for example, this quick process is often known as ‘property flipping’.

In this scenario, a bridging loan could be the finance solution to fund the purchase due to the short term nature of the financial product.

Bridging loans are a type of secured lending and therefore as part of the criteria for the mortgage, a procession of a high-value asset is required, which is ideal for landlords.

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Bridging loans typically will be offered at higher interest rates compared to standard mortgages; however, they can be beneficial for landlords as they can be used to purchases non-mortgage properties, and also won’t have early redemption penalties.

Another benefit of using a bridging loan is the speed of the transaction, often the application and payment processes are much quicker than standard mortgages, and therefore having the finance available promptly can be an advantage for the landlord.

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Refurbishment Finance

Should the property sought to require refurbishments, especially on a large scale meaning that the current condition is unhabitable, obtaining a mortgage could be challenging. Traditional lenders will not approve a mortgage on properties in certain conditions, such as without a functioning kitchen or bathroom, due to the risks involved and therefore other finance methods will be required.

A refurbishment mortgage may be the solution. It is a short-term type of mortgage that requires a strategy upon application to notify the lender of how the monies will be repaid.

Refurbishment mortgages come in two types; Light refurbishment finance suitable for projects that do not require planning permission or building regulation consent to undertake the planned improvement works, or heavy refurbishment finance that would finance larger projects, typically that cost more than 15% of the property value.

The duration of the loan will require on the type of refurbishment mortgage opted for, and the timeline of the refurbishment works, however the longer the finance is in place, the more it will cost due to interest.

Refurbishment mortgages are usually offered by specialist lenders who would assess the property value after the proposed renovations have been completed, and therefore a landlord or investor can benefit from borrowing more than with a standard mortgage as typically standard mortgages are assessed on current property values only.

Flexible mortgages

Flexible mortgages provide a landlord or investor with an option to save on early redemption fees, as often the timeline of property sales cannot be exactly planned.

An early redemption fee is charged on standard mortgages to penalise borrowers for ending a mortgage term early, whereas flexible mortgages have little or no early redemption fees so mortgage terms do not have to be considered when seeking to sell the property.

Flexible mortgages can be obtained for both residential and buy to let types of properties, however, they differ from refurbishment mortgages, as the property secured with the mortgage needs to be habitable.

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Development mortgages

Should a property investor be researching developing a plot of land to then sell on, often there would two types of mortgage suitable; self-build mortgages or development finance.

Self-Build mortgages

Should the development plan conclude with the mortgage owner living within the built property, a self-build mortgage may be option depending on the financial circumstances.
Self-build mortgages are often limited to 70% loan to value rate of the build cost, and therefore the balancing 30% would need to be self-funded as a deposit.

The funds are released from the lender in stages throughout the build. The work completed at each stage is then assessed by a surveyor, feeding back to the lender. The number of stages required would be set at the beginning of the process, depending on the scope of the building project.

Should the plot of land need to be purchased initially also, land mortgages would be an option.

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Buy to Sell Mortgages Summary

As every landlord or investor’s circumstances and background will differ due to many factors such as the number of properties within their portfolio and the level of equity available for further borrowing. As well as the objective for further borrowing, these other circumstances will be taken into consideration by lenders.

As the options discussed throughout this article are specialist financial products, a specialised broker would be required to review the individual circumstances as mentioned above, and the market conditions in order to provide tailored advice as well as source the best option and rates available.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Mortgages

Foreign National Mortgages – UK Mortgages for Foreign Nationals

John Chivers | Mortgage & Protection Advisor

Updated 21, March 2025

Skilled foreign workers that have settled in the UK with a relevant visa, may assume that they cannot purchase property here, however, this is not usually the case.

Foreign workers may wish to purchase property within the UK for a short-term purpose such as to live in while they remain within the UK, or for longer-term investment purposes.

Lenders are usually prepared to offer mortgages to skilled foreign workers that meet the borrowing criteria however there are additional risks involved due to the uncertainty, such as whether a foreign national will remain within the UK for the full mortgage term.

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The main difference for a foreign national mortgage compared with a standard mortgage is the application criteria, which will be discussed later in this guide.

However, if approved, the mortgage is like any other standard mortgage such as the choice between fixed and variable interest rates and the process will follow the standard application process.

There will be the usual fees to pay including:

Mortgage arrangement fees.
Property valuation fees.
Legal fees.

What is a Foreign National Mortgage?

If you’re not a UK citizen, it’s still possible to secure a mortgage on UK property. A foreign national mortgage is available to applicants that meet the following requirements:

You’re a non-UK resident or don’t have permanent residency in the UK.
Born outside of the EU but have indefinite leave to remain or permanent residency.

Factors that impact a Foreign National Mortgage application

When assessing your application for a foreign national mortgage, lenders will take into account the following factors when determining your suitability:

Remaining time on your visa to stay in the UK.
The type of visa you hold.
How long you have been in the UK.

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How to get a Foreign National Mortgage in the UK

If you are just considering applying for a mortgage as a foreign national living in the UK, the first important steps to take, which will make your application much more attractive for lenders include:

Open a UK bank account.
Secure a permanent job in the UK.

If these steps are not possible, certain lenders may accept mortgages paid from an overseas income, so it’s not the end of the road.

We also have foreign national mortgage brokers who can help you locate the lenders and best products for your specific circumstances, contact us today for a free, no-obligation chat.

Visa classes and how it affects lending

When applying for a foreign national mortgage, the type of visa you hold is an important consideration for lenders.

Here are the three main types of visas and what they may mean for your mortgage application:

Family Visa

These visas are for individuals married and living with their UK spouse, as well as children and parents.

This visa enables you to work and stay indefinitely, there’s also the option of making a joint application with your spouse, which can improve your application success rate.

Tier 1 or Tier 2 Work visas (now called Skilled worker visas)

The chance of securing a mortgage on either of the visa types will depend on the amount of time remaining on your visa. Most lenders will request that foreign nationals have at least 12-24 months remaining on their visa.

Read all about Skilled Worker Visa Mortgages.

EU Nationals

Skilled foreign workers with an EU passport are currently deemed by lenders as UK national and therefore will usually be able to apply for a standard mortgage in the normal way, as long as they have been living within the UK for at least 6 months.

The usual affordability and credit checks will be required during the application process, so as long as the EU passport holder meets these requirements, there should not be a reason why high street lenders would not consider lending with competitive rates and terms.

This may however change depending on the outcome of Brexit.

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Which Visa is Required to Obtain a UK Mortgage?

Skilled foreign visa holders with either a Tier 1 or Tier 2 category visa can usually be accepted for mortgages within the UK depending on the usual affordability and credit checks required.

However, a Tier 5 foreign national would be considered a temporary worker and therefore would usually not be offered a mortgage.

A spousal visa is granted to those married to UK nationals and are usually treated in the same way as Tier 1 or Tier 2 visa holders.

In addition to the usual checking process, lenders considering a mortgage application from a Tier 1 or Tier 2 visa holder will also be interested in two other factors:

How long the applicant has lived in the UK.
The duration of time left on the visa.

Typically, lenders will require a skilled foreign worker to have been a UK resident for two- or three year’s dependant on their criteria.

This time frame is set so that an applicant would have a chance to build up a credit file within the UK including employment and credit history. Also, lenders will expect foreign applicants to have a permanent job within the UK as well as a UK bank account.

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Lenders commonly ask for applicants to have a minimum of 6 months remaining on their Tier 2 visa, although they will usually take into consideration the circumstances of whether the visa is likely to be renewed due to continuous employment within the UK.

Should an applicant have less time left on their visa, a larger deposit down payment can be advantageous to the application.

Other elements can help the application process, such as if the reason for the relocation to the UK is through work with the same multinational employer, the income could be traced for a longer duration, reassuring the lender.

As Kenneth Clarke, from Sidepost.com.au states “it’s important to provide full documentation when moving abroad, including your tax returns and annual profit and loss statements.”

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Foreign Nationals with a Poor Credit Score

Should a mortgage applicant have a very minimal credit record history within the UK, or a bad credit score, it may be more challenging to secure a mortgage however often not impossible. In such a scenario, the interest rate offered, and other terms applied are likely to be less desirable or competitive due to the risks involved for the lender.

A credit record history can be built up over time, and therefore the duration that a foreign worker has been residing within the UK is a key factor.

The credit scoring system not only reviews the affordability of an individual but also the records of regular payments on consumer credit agreements on everyday expenses such as mobiles or utility bills.

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Should a negative mark be applied to a credit record such as a County Court Judgment, a default of a loan or an IVA, there can be increased difficulties in obtaining a mortgage.

In such situations when a foreign national has a poor credit score for a variety of reasons, it would be very worthwhile to seek independent financial advice to explore all of the options available to secure a mortgage and obtain the most competitive rates.

Foreign Nationals who are self-employed

Self-employment adds complexity to any mortgage application, even to UK residents and therefore if an applicant is a foreign national also, it would be worth seeking independent financial advice to explore the options available.

Other Considerations

Foreign nationals may wish to consider the following when seeking to purchase a property within the UK:

The location of property purchased for investment would be key. For example, lenders may favour investment purchases on properties within cities compared to dwellings in towns for example, without great transport links or universities campuses.
Should the foreign nationals are utilising funds from abroad for a deposit, additional checks may take place and therefore this could cause delays to the mortgage completion process. The source of funds must be traceable to enable the mortgage application to be approved.

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Foreign National Mortgages Summary

Certain categories of foreign nationals can obtain a mortgage within the UK as long as they meet both the general borrowing criteria as well as any specific criteria relating to foreign nationals as set by the individual lenders.

Depending on the personal circumstances and credit history of the mortgage application, independent financial advice may be required to seek out specialist lenders and compare the interest rates and terms on offer.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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Mortgages

Reasons Why a Mortgage Could be Declined on Affordability

Unfortunately, even after receiving a mortgage in principle, a mortgage application could be declined at a later stage of the process.

In this post, we will discuss the many reasons that could lead to a mortgage application being declined, including those linked to affordability.

Reasons Why a Mortgage Could be Declined

Over recent years, following a mortgage market review, the lending criteria has been tightened and therefore there has been an increasing trend of mortgage applications being declined due to affordability.

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Even if a lender issues a mortgage in principle, this is not a guarantee that the applicants will pass the rigorous checks that are now undertaken by the lender’s underwriting team.

These checks will include background checks on the applicant’s finances, a thorough review of the applicant’s credit history, as well as checks on the property that will be linked to the mortgage, including surveys confirming the property’s condition and value.

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One lender declining a mortgage application does not mean that it would be the end of the journey to take that first step onto the property ladder or to re-mortgage and move, as another lender may have differing criteria. However, should a mortgage application be declined, it is important to establish the reasons why so that actions can be put into place to rectify the concerns.

There are many reasons why the outcome of affordability checks may not be sufficient for a lender. These often are due to the applicant’s current credit score, their credit history, income levels and the property itself.

Let’s discuss the common issues further below:

• High debts – When reviewing a mortgage applicants credit file, the lender’s underwriting team will be able to assess how much debt the applicant has. Each lender will have their criteria of acceptable debt levels, however, many factors will be reviewed including; the number of credit accounts open as well as the level of current debt versus the total available credit limits. In addition, the percentage of income that would be spent on debt repayments each month would be of interest to the potential lender as this would have an impact on the level of disposable income available to the applicant following all bills being paid.

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Lenders will be concerned that an applicant with high debt levels may struggle to keep up the repayments on both the current debts and the new mortgage

• Credit Score and Credit History – A credit report will be requested for the mortgage applicant which will state their current score as well as detailed credit history.

A mortgage lender could decline an application should it find something disclosed on the credit score that it doesn’t like including a County Court Judgement (CCJ), a filed bankruptcy or previous home repossession.

Should there be a history of any of the above within the personal circumstances of someone seeking to obtain a mortgage it would be advisable for them to liaise with a specialised mortgage broker for further advice on lenders who are willing to accept applicants in such a position. The timing of the negative event on an applicant’s credit history will also be key. For example, a CCJ will remain on a credit report for six years following the event.

• Affordability concerns due to high monthly expenditure – As briefly discussed under the high debt concern, a potential lender will review all monthly expenses of an applicant, either by scouring through the bank statements supplied or reviewing the submission of monthly expenses that an applicant was requested to complete for their application.

The expenses themselves may not be the issue, however, the percentage of the disposable income after all the outgoings will be under scrutiny and each lender will set an acceptable level of this against which the applicant will be reviewed against.

Mortgage lenders will also review transactions that may be deemed as irresponsible spendings such as regular gambling or payday loan repayments.

• Mortgage deposit insufficient – The level of deposit required will be known from the beginning of the application process, however, if an applicant’s deposit is later found to be insufficient a mortgage application can be declined.

Also, in some situations, a lender can revise their mortgage offer so that the potential homeowner needs to find a higher level of deposit due to the risk factors involved.

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Again, this may not be the end of an applicant’s property ownership dreams, they may need to find an alternative approach to funding a property purchase including exploring many of the government schemes that can help fund deposits.

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Such schemes change over time by the governments objectives however currently there are quite a few options including:

Lifetime ISA – A type of savings account that the government will provide a bonus of 25%. The maximum savings to qualify for the bonus is £4,000 a year.
Help to Buy ISA (No new accounts are available) – Another type of savings account that the government will provide a maximum bonus of £3,000 if the account holder saves £12,000. The bonus depends upon the savings amount.
Help to Buy equity loan – Another type of borrowing providing up to 40% of the property value as a 5-year interest-free equity loan. Interest is currently payable on the equity loan at 1.75% after the fifth year and 1% plus RPI for every year afterwards.
Shared Ownership schemes – A staged ownership scheme enabling the applicant to purchase between 25% and 75% of the property initially via a specialised shared ownership mortgage. Following this, further percentages can be purchased as earnings increase and affordability factors improve over time.
Salary Concerns – Often high street lenders specifically apply an income multiplier to calculate the total amount of money available to an applicant to borrow. Should this calculation not be sufficient for the property purchase proposed it is likely that a mortgage application would be declined. In this case, it would be highly advisable to seek independent financial advice to see if other options are available such as specialist lenders, who in certain circumstances can offer a higher multiplier.
Concerns with the Property – Some types of property are not eligible for a mortgage, for example, uninhabitable properties, properties with structural concerns, issues such as damp or invasive weeds, low-value properties or those with a history of flooding

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Reasons Why a Mortgage Could be Declined Summary

Should there be any concerns regarding mortgage affordability or if the mortgage application has been declined due to affordability criteria, it would be worth seeking specialised financial advice to discuss other options available.

There are now more methods of purchasing property than ever before, including government schemes and mortgage products and therefore one lender’s decision to decline an application will usually not have to be the end of a property ownership journey.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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Mortgages

How Reliable is a Mortgage Agreement in Principle?

Ciaran Wilkinson | Sales Director

Updated 21, March 2025

A mortgage in principle, or otherwise known as an agreement in principle, is a written document issued by a lender, providing a provisional indication of how much money may be able to be borrowed.

The provision of a document is part of the mortgage application process which will be discussed throughout this article in addition to; clarifying exactly what a mortgage in principle is, how to secure such agreements are, as well as the effect that mortgage in principle has on credit scores.

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What is a Mortgage in Principle?

As briefly mentioned, a mortgage in principle is issued by a lender and advises in writing, an estimated total value that can be borrowed by the mortgage applicant or joint applicants.

The document is produced as part of a mortgage application process and can be provided to vendors, estate agents or home building companies to prove that the applicant is serious about purchasing a property and can (in principle) obtain a mortgage.

How is a Mortgage in Principle Obtained?

A mortgage in principle can be applied for online, over the telephone or in within the branch of a high street lender. In addition, a mortgage broker can source a mortgage in principle for applicants.

Personal information will be requested in order to complete the initial checks required to produce a mortgage in principle including:

• The applicants’ names, date of birth, and current address.
• Previous addresses if applicable, covering at least three years.
• Income details.
• Information regarding current expenditure and credit agreements.

The process of obtaining a mortgage in principle should be free and at this point does not commit either party to continue with the mortgage application. Should the mortgage application process proceed. Additional supporting documentation may be required to support the mortgage application.

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Does a Mortgage in Principle Affect a Credit Score?

A lender will need an applicant’s permission to undertake a credit search to be able to produce a mortgage in principle.

The search may be a ‘soft search’ that would not be visible via other lenders and not leave a mark on your credit records, however, a ‘hard credit’ check would leave a ‘footprint’ on an applicant’s credit file that other lenders could see.

This credit search could also affect an applicant’s credit rating in future and therefore it is advisable to be strategic regarding mortgage in principle requests.

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How Reliable is a Mortgage in Principle?

A mortgage in principle can be withdrawn as at this stage several deeper checks, otherwise known as underwriting, have not taken place, including background checks on applicant’s finances, a thorough review of the credit history, as well as checks on the property that will be linked to the mortgage, including surveys confirming the property’s condition and value.

Some types of property are not eligible for a mortgage such as properties that are uninhabitable or derelict, properties with structural concerns, issues such as damp or invasive weeds, low-value properties, or those with a history of flooding.

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It is not a mortgage offer.

A mortgage lender could decline the borrower’s mortgage application and withdraw a mortgage in principle due to an array of reasons such as:

• Failing additional financial affordability checks.
• Considerable changes to financial circumstances.
• A subsequent drop in credit score following the mortgage in principle being produced.
• An employment change deemed not acceptable by the lender, such as a move from a permanent to a temporary contract.
• The discovery of a County Court Judgement.
• Insufficient duration of self-employed income.
• Findings of the dishonesty of fraudulent claims during the initial application process.
• Concerns regarding rights to live in the UK.
• Other mortgage application criteria may not be met such as the applicant has a birthday and therefore is older than the maximum age that the lender is prepared to lend to.

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Should an application be declined for a mortgage, this doesn’t necessarily mean that other lenders will not be willing to make a mortgage offer to the applicant.

However, specific advice would be required from an independent financial adviser before undertaking any next steps so that further marks are not made against a credit file before investigations are undertaken.

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How Long is a Mortgage in Principle Viable for?

Typically, a mortgage in principle will be valid for 30 to 90 days from the date of being obtained. It may be possible in certain circumstances to seek an extension to the mortgage in principle.

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What Happens After the Mortgage in Principle Stage?

Following the receipt of a mortgage in principle, the property hunt can begin. Should an offer be accepted on the desired property, the next step would be to apply for a mortgage offer.

As already discussed, a mortgage offer is not guaranteed following receiving a mortgage in principle however should all the checks be completed sufficiently, this would naturally follow.

The property purchase would then proceed to exchange contracts, following by the completion stage.

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A mortgage in Principle Summary

A mortgage in principle is an initial stage of a mortgage application enabling potential buyers to explore the property market to find their dream home however it is not a grantee of a mortgage offer.

Throughout the underwriting process, the mortgage will be firmed up and confirmed by the potential lender issuing a formal mortgage offer. At this stage, the likelihood of reliability has increased.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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