Frequently Asked Questions
Why use a broker?
Using a broker means you’ll have access to 1000s of deals across 70+ lenders, saving you time searching the market yourself. We complete one fact find to gather your information and strive towards getting your mortgage application right first time. A great broker will identify which lenders are right for you to make the whole process as smooth and stress-free as possible. We have a great network of connections to speak with the right people to get the right answers for you. It’s our duty of care to ensure you get expert advice throughout the life of your mortgage, ensuring you receive tailored deals suited for you.
What's an agreement in principle / decision in principle?
An Agreement in principle (AIP) is given to you by the lender based on basic information provided to them. This includes some personal information, information about your income, any credit commitments you have and deposit size available. They also perform a credit check, which is usually a soft credit search to understand your credit history. AIPs last between 3-6 months and are a helpful tool to show your level of borrowing available. Remember, they don’t guarantee you the mortgage borrowing as a full underwriting assessment hasn’t been made, plus they don’t take into account the property your buying, so please bear this in mind.
How much can I borrow?
Every lender assesses your income differently, and your circumstances can impact the amount you can borrow, such as employment status, variable pay, deposit size and amount of income. Lenders can typically lend up to 4.5 times your income, although some lenders can lending up to 5 times your income.
When are credit checks performed?
Credit checks are commonly performed at agreement in principle (AIP) stage and once a full mortgage application has been submitted. Usually a soft credit search is completed at AIP stage which won’t affect your credit score, however a hard credit search is always completed upon submission of a full mortgage application which will leave a footprint on your credit report. So it’s important to apply to the right lender to avoid declines which can impact your score.
When should I look at a new mortgage deal?
You're able to secure a new rate up to 6 months before your existing deal is due to end. This is useful for planning ahead and knowing what your monthly payments will become. We review rates offered from your existing lender and products offered by the market and compare the true cost payable so you know you're getting the best deal tailored to you. As part of our service, we regularly monitor whether any better rates become available, and swap your secured rate to a lower one should better interest rates become available before your switch date.
How do I build a portfolio?
We specialise in educating our clients how they can utilise their equity, whether it be their residential home or BTLs, to buy further properties. Building a passive income from rent is giving people the financial freedom they desire. We don’t offer tax advice, but we can refer to tax specialists to help guide you through making your property portfolio as tax-efficient as possible.
What locations do you cover?
Stafford Financial Services help with mortgages in England and Wales.
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