We teamed up with TSB for a Twitter Q&A on everything to do with mortgages. Here are your questions and our answers.
This week we held a mortgage Q&A on Twitter with TSB’s director of mortgages Ian Ramsden (IR) and myself (JF). Here are some of your questions and our answers (both have been expanded beyond 140 characters in some cases for clarity).
Can you tell me the type of questions I can expect from a mortgage lender as a first-time buyer?
IR: “To help you find the right mortgage we'd need to understand things like deposit size and how much you'll be able to afford. Qualified mortgage advisers can help you through the process.”
How much are lenders lending at the moment? Four, five times your salary?
IR: “TSB may lend up to five times your salary, but the decision isn’t based on salary multiples, it’s what you can afford to repay.”
Should there be a more secure form of submitting/sending personal documents enforced by mortage lenders?
IR: “Security is our primary concern. Customers can choose to come into branch and submit their documents face to face.”
JF: “The mortgage process is getting more technological, it's only a matter of time before more secure online methods are developed.”
When remortgaging is it possible to borrow more than the existing mortgage to release capital. Are there any extra costs/problems?
IR: “Yes, depending on your personal circumstances. There are no extra fees, but you will pay interest on the additional borrowing.”
How do I get on the property ladder when house prices in London are rising faster than I can save each month?
JF: “There are a few options with things like guarantor mortgages. Or you could do what I do and commute in from the shires!”
How can I obtain a mortgage for my housing association house, if I have a really bad credit rating?
JF: “First, improve that credit rating. Our guide How to repair your credit rating should help. Then it’s worth speaking to a broker.”
Will someone who isn't in debt but has defaults on their file struggle to get a joint mortgage even if their partner has a good credit rating?
JF: “It will be more difficult, but each lender will approach it differently, so don't give up!”
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What is the current minimum deposit to get a mortgage for a one-bedroom flat in Wandsworth/Lambeth in London?
JF: “It varies by lender. It can be anything from 5% to 20%.”
Can I consolidate a normal mortgage and a buy-to-let mortgage and, if so, can the total LTV be higher than 75%?
IR: “In principle you could consolidate by borrowing against one property, but it depends on your circumstances, as would the LTV.”
Why don't banks assess ability to pay on history of paying rent? My rent is £650pm but a mortgage would be less!
IR: “The lender’s affordability assessment should highlight that you can afford this.”
Can you have three people on a mortgage?
IR: “Yes, but it can vary by lender.”
I changed my mortgage to consent-to-let three years ago. Can I move to another lender?
JF: “Consent-to-let is supposed to be a short-term solution. If you want to move to another lender, it will have to be a buy-to-let mortgage.”
Are rates on comparison sites available direct from lenders? Can brokers get better rates?
JF: “Rates on comparison sites are available direct. Sometimes rates available through brokers will be different though.”
I’m on a repayment mortgage. My calculations suggest I will have a shortfall at end of my mortgage term. Will I be forced to pay it?
JF: “You need to speak to your lender, to establish if your sums are right. There shouldn't be a shortfall on a full repayment mortgage.”
I’m on a very low mortgage rate, putting the money I save into an ISA. Should I pay my mortgage off early?
JF: “Personally, I'd prefer to get that debt clear first, then bump up the ISA with money I was paying off the mortgage with.”
Got a mortgage question? Post it in our Q&A section and see if our community can help
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More on mortgages and property:
Overpay your mortgage and save thousands
Why mortgage lenders turn you down
Buying in a market town costs an extra £25,000