Frequently asked questions from Hedge End’s specialist mortgage brokers
Got a question about mortgage terms or brokerage services? Below you can find a selection of our most commonly asked questions – or if the information you need isn’t here, we’re always happy to answer your queries. Drop us a line on 01489 664 900 to chat with our friendly expert advisors today.
How much will mortgage lenders offer?
The amount you’ll be able to borrow will be based upon your income and outgoings, as well as a number of other factors. Lenders use affordability calculators to determine how much you can afford to borrow and how much they’ll subsequently lend you; however the criteria used to determine affordability will vary from lender to lender. For example, some will offer lower amounts if you have high amounts of credit card debt, while others won’t take these debts into account when calculating affordability.
Whatever your circumstances, Venoa can help you find the best mortgage, personal loan or hire purchase for your future plans. Our team can provide access to up to 95 lenders across the market; and with over 10 years of expert knowledge in mortgage products and lender criteria, we can help you secure the perfect deal for your current situation and the amount you’re looking to borrow.
What types of mortgage rates are available?
There are fixed rates, tracker rates and discounted rates. The most popular rates in the current economic climate are fixed rate mortgages.
Fixed rate mortgages
With a fixed rate mortgage, the interest rate remains the same throughout the length of the mortgage; which means you’ll know exactly how much will be taken from your bank account each month. Fixed rate mortgages are useful for budgeting; and at the time of writing the interest rates are very low, regardless of your deposit amount.
Tracker rate mortgages
Tracker rate mortgages typically track the Bank of England base rate. They move in line with any increase or decrease in the base rate – at time of writing, the BOE rate is currently 0.75%. Unlike a fixed rate mortgage, a tracker mortgage lets you take advantage of any future drop in interest rates; which is why you’ll likely be recommended a tracker mortgage if the base rate looks set to drop.
Standard variable rates (SVRs) and discount rates
Standard variable rates operate similarly to tracker rate mortgages; but instead of tracking the Bank of England, they track the lender’s own rate (which often mirrors the BOE base rate, but may differ significantly). Many lenders also offer discount rates (also known as discount variable rates) which are simply SVRs with an additional discount applied.
Variable rates are less expensive than fixed rates, and since lenders have to remain competitive, their rates will often give a better deal than tracker rates; but while variable rates often follow the BOE base rate, bear in mind that your lender isn’t obligated to reduce their rates if the base rate drops. You’re also more likely to experience sudden increases in your rate with a variable rate.
Not sure which rate is best for you? Venoa is always keeping an eye on interest rate fluctuations, so come and have a chat with us and together we can investigate the best offers for your current situation.
How can I compare mortgage options?
Once you’ve been pre-approved with a mortgage lender (or lenders), you’ll be able to view the products they have available for you. All lenders have different processes and criteria for assessing your eligibility for pre-approval, so it’s always best to speak to a financial expert who understands mortgage criteria and how to navigate it.
At Venoa all we need is a short initial call, and within 24 hours you will be pre-approved with up to 95 lenders. You’ll only be recommended the most suitable mortgage options for your requirements; so you can save time and effort when comparing products.
What do I need to consider when applying for a mortgage?
You’ll need to take into account the cost of your monthly payments, any lender fees, stamp duty, deposit requirements and which mortgage lender/s are most likely to accept your application. Venoa’s friendly experts can offer advice and support on all these factors to help you select the best deal for your needs.
If you are looking at remortgaging, all you need to do is compare the interest rate and fee offered by a professional mortgage broker to those offered via your existing lender. Given the many uncertainties which exist today, it’s wise to start this process six months before the your existing deal expires. This will ensure at the time your new deal is in place, it’s the best on the market.
What is a mortgage in principle? Do I need one?
A mortgage in principle is a statement from your chosen lender, which indicates you have passed your chosen lender’s minimum credit score criteria, and states how much you could borrow. It’s also known as a mortgage promise or an agreement in principle.
If you are purchasing a property, most (if not all) estate agents require a copy of this to prove you can apply for a mortgage; which in turn indicates you’ll be able to afford the property purchase in question. Please note that a mortgage in principle does not guarantee you will be successful in applying for a mortgage; it only confirms you can move forwards with a mortgage application.
Can I trust Venoa with my personal information?
Venoa uses the latest technology to keep your data secure and ensure peace of mind. We will never sell your data or use it without your permission for any purposes other than obtaining you a mortgage, specialist lending solution or insurance.
Venoa Financial Services Ltd is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Venoa Financial Services Ltd is a company registered in England and Wales with company number 11700326. The registered office address is 34 St Johns Road, Hedge End, Southampton, Hampshire, SO30 4AG United Kingdom.