Fee-Free Mortgages

Before you start house hunting, it’s important to work out how much you can borrow. 

This will help you narrow down your house search when you’re looking at properties. 

It’s also important to consider how much you can realistically afford to borrow.

To work out how much you may be able to borrow, you could use one of many mortgage calculators. You don’t need to do this as a broker can work out all these figures for you. Speak to one of our mortgage advisers for free advice.

After finding how much you may be able to borrow, you should add up all the other costs that relate to the mortgage application and your house move. Such costs include:

• Stamp duty
• Appraisal fees
• Legal costs
• Application fees

Some brokers will also charge a fee. At YesCanDo Money, we do NOT charge a fee when you use our services. We compare mortgages from the whole market to find you the best available rate and deal.

We will help you add up all of the costs related to your house move and will give you a more accurate figure than a mortgage calculator could.

You should also consider knowing how much your household bills will increase before buying a new home.

We have more advice here: How much mortgage can I get?

Getting a Mortgage in Principle is always recommended. It is a document given to you by your lender or a broker that lets you know how much you could borrow, in principle. 

A broker or lender will look at your income, credit commitments and other outgoings to check your affordability for a mortgage. Once you have chosen a mortgage product, we will secure the agreement in principle.

The MIP isn’t a legal document. The lender could still refuse the mortgage on the terms they have set out, but it is a useful indicator of how much you may be able to borrow.

The Mortgage In Principle will:

• Give you a better idea of what houses you may be able to afford
• Show any estate agent that you’re a serious buyer with proof of a mortgage loan

YesCanDo Money can create and provide the MIP for you within 24 hours. Get in touch with us to learn more. Speak to us before applying for a mortgage with a high street bank or building society.

The MIP is also known as an ‘agreement in principle’ or even a ‘decision in principle’.

We have more advice here: How to get a mortgage in principle.

When you know how much you may be able to borrow you can begin house hunting for the property you want to buy. Popular websites to consider include:

• Zoopla
• Rightmove
• PrimeLocation

You don’t need to hurry the house hunting process as it’s important to find the right home for you. However, it’s worth noting that MIP’s last for between 30 and 90 days. If you haven’t found a property in that time, you will need to re-apply for another.

Different types of mortgages are available in the UK. These include:

• Fixed-rate mortgages
• Help to Buy mortgages
• Buy-to-let mortgages
• Capped mortgages
• Small deposit mortgages
• Discounted mortgages
• Offset mortgages
• Tracker mortgages

We explain in more detail about the different types of available

Interest-only mortgage

Interest-only mortgages pay only interest on the loan and nothing off the capital. Lenders and regulators are worried about homeowners being left with a huge debt. These mortgages are becoming harder to come by. You will have to have a separate plan to repay the original loan at the end of the mortgage term…. interest types here > Best Mortgage Rates

We will explain Fixed-rate mortgages below as this is the most common type of mortgages.

Fixed-rate mortgages

Considered the most common type of mortgage interest rate is the fixed-rate mortgage. As the name indicates, a fixed-rate mortgage has a fixed rate of interest for a set period of time. This mortgage term tends to vary between two and ten years, however, there are some deals where a longer term is available.

The main advantage associated with this type of mortgage is that you have the peace of mind that you are going to be paying the same monthly payment every month for the fixed period/term.  Make sure you get advice from a mortgage adviser before you pick one of the many fixed-rate mortgages with a long term. Having to stop a fixed mortgage rate because you are moving home or wanting to change your mortgage can be very costly sending on your financial situation.

Contact your broker or lender when the seller accepts your offer to begin your mortgage application. Going direct to a lender such as a bank will restrict your access to the whole mortgage market as they will only offer you their mortgages.

At YesCanDo Money, we can search the whole market and help you find the best mortgage for you.

A solicitor will handle the legal aspects that relate to buying and selling a property. 

You should choose a solicitor as soon as you have agreed to an offer.

To find a solicitor:

• Ask for recommendations from friends and family members
• Read their online reviews
• Speak to a broker for advice

Your lender might recommend a solicitor to you but you do not have to use them.

We have more advice here: How to find a conveyancing solicitor.

When it comes time to apply for your mortgage, give your mortgage broker the documents they need to begin the process.

As well as your bank statements, they will need documents that give proof of your ID, address, and income. Such documents can include:

• Tax returns
• Payslips
• Passport
• Driving licence
• Gift letters

Contact us to learn more. 

Your lender will ask for a valuation to check that the property value matches up with what it was valued it by yourself or the estate agent. 

This valuation will be carried out by somebody with surveying experience. Some lenders will ask you to pay for the valuation as one of your mortgage fees. 

After the valuation, they will decide how much to give you for your mortgage. 

If the lender offers you a mortgage at less than the buyer’s asking price, you can either:

• Source the rest of the money needed elsewhere
• Renegotiate with the seller
• Find a different lender

Speak to a broker if you would like a more detailed survey done. 

When you get your mortgage offer, you are finally on the way to securing your new home. Once you have the offer, it is usually valid for between 3-6  months.

The mortgage offer will be given to you after:

• You have successfully completed your mortgage application
• The valuation report has been completed

If you are happy with the mortgage offer you can accept and sign it.  Your solicitor will then start the final phase of the buying process, including the exchanging of contracts between you and the house seller. 

If your application is initially declined, your journey isn’t over. It might be that you didn’t meet the lender’s lending criteria. A mortgage broker will help you find a more suitable lender. 

This is where you seal the deal between you and the house seller.

Both yours and the seller’s solicitors will exchange contracts. All you need to do is sign yours.

After contracts have been exchanged, a date will be agreed for receiving the keys to your new home. 

Here’s the exciting part!

You can move into the home on the agreed date and begin the next chapter of your life. Hoorah!