FAQs

Answering your questions and providing clarity is one of our most important tasks. We might have already answered some of your initial questions below.

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James Leighton

Who are we and how do we work? We’re always transparent.

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Mortgages

Find answers to other clients’ most asked mortgage questions.

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Protection

We’ve provided early clarity on insurance and protection products.

James Leighton

Q

Can I use your mortgage services if I’m not buying a new build property?

A

Absolutely! We help clients across the UK with buying resale properties as well as new build properties, not forgetting remortgaging them too - our adviser's expertise covers a wide range of property types and mortgage options. There are no hidden fees or tiered levels of service, meaning that whatever support you require, it's provided to you without any cost, while maintaining the same high standard of excellence.

Q

Why should I use a mortgage adviser?

A

Choosing a mortgage adviser comes with a multitude of advantages. They have the expertise to pinpoint lenders who can provide you with the most favourable terms, tailored to your unique circumstances and preferences. They can guide you through the process, helping you sidestep common pitfalls. One of the key benefits is the peace of mind that comes with knowing you’re protected thanks to a formal complaints procedure. Zero hassle and peace of mind.

Q

How will you determine the right mortgage for me?

A

We believe that there is a right mortgage out there for everyone. But with a mind-boggling array of more than 90 lenders and 1000s of deals available to us, your friendly adviser will start by carrying out a fact find to establish not only the finer factual details of your financial circumstances but also your personal preferences and objectives. With the combination of skill, experience and great technology, you can be confident that we’ll find you the ideal mortgage.

Q

Can you help me understand which government schemes I might be eligible for?

A

Definitely! We're well-versed in government schemes like Shared Ownership and First Homes, as well as Deposit Unlock which was created by the Home Builders Federation. We will explain eligibility criteria, application processes and how it affects your mortgage options.

Q

I’d like to get financially qualified by you, what documents will I need?

A

You don’t need any documents at qualification stage. If you are looking at applying for a joint application, it would be useful to know the second applicant’s employment and salary information. Our friendly expert Qualifiers will ask you questions about your personal and financial circumstances in order to accurately assess your mortgage affordability. There is zero obligation to take our advice or use our services, you can simply call our Nottingham office for a chat!

Q

How do you make money if you are a completely free service?

A

We are proud to offer completely fee-free services. Every mortgage broker receives a commission from the lender once your mortgage is finalised. However, what sets us apart is that we don't burden you with any additional fees. You can hold on to your money for more exciting purchases, while we strive to transform your dream home into a reality.

Q

What else can you help with?

A

As a premium service mortgage brokerage, we’ll also be able to advise you on how to safeguard you and your family’s financial future with a suite of high-quality insurance products from carefully selected providers, such as life and critical illness cover, income protection, family protection and, of course, home insurance. We’re a one stop shop for all of your home finance needs.

Q

How can I make sure my financial plan is sustainable for the long term?

A

Financial planning should include a long-term vision to ensure any decisions you make today will be most suitable and beneficial over the following months, years and even decades. When accessing financial planning services, it is best to disclose your long-term goals, such as buying investment properties, starting businesses and even personal decisions like starting a family.

Q

What are the different ways to save for a rainy day?

A

There are many products that allow you to save money and earn interest, such as fixed-term bonds, ISAs, Stocks and Shares ISAs, and a myriad of investment products. Each comes with different levels of risk exposure, which should be considered before opting into any product. This can be discussed at length with our recommended savings and investment advisers.
 

This service is on a referral only basis.
 

Quilter Financial Planning accept no responsibility for this aspect of our business or any advice received from these referrals.

Q

How can I make sure my financial plan is updated as my circumstances change?

A

Although your initial financial plan may have accounted for your long-term milestones and important events, life can also be full of surprises. The best way to ensure your current plan is still suitable is to book regular financial planning consultations with your adviser. They may be able to recommend changes that could offer significant benefits in the years to follow. 

SHOW MORE

Mortgages

Q

What factors determine mortgage eligibility?

A

All banks and building societies have different lending criteria with many having particular strengths and weaknesses dependent on their appetite for risk, such as self-employed income or those with adverse credit. In all cases, lenders will consider your income, credit profile, size of deposit and the amount of your disposable income to determine your eligibility and affordability.

Q

What type of mortgage is most suitable?

A

There isn’t one type of mortgage that is better than others. The optimal mortgage for you can only be determined based on personal needs and preferences, as well as the current mortgage market which is influenced by the economy. To understand the most suitable mortgage options that are available right now, it’s worth engaging with one of our experienced mortgage brokers.

Q

How can I pay off my mortgage quicker?

A

Most mortgages allow for some level of overpayment without incurring early repayment penalties, usually up to 10% of the outstanding balance each year, which will help to reduce the term of the mortgage. One alternative option could be an offset product that will allow you to link your savings to your mortgage to help reduce the term of the mortgage. Our advisers will discuss all of the options available to you.

Q

How much money do I need to save for a deposit for my first home?

A

Of course, the more the merrier. However, we understand that is easier said than done. The great news is that there are loads of mortgage options and schemes available that will allow for as little as 5% deposit. At the time of writing, there are even some zero deposit options available for some buyers in certain circumstances. Whatever deposit you have, speak to our team to see what mortgage options are available and you might be surprised at what is possible.

Q

How can I estimate how much I can afford to borrow as a first-time buyer?

A

It’s actually quite difficult to estimate because there are so many factors affecting how much you can borrow, such as employment status, credit rating, size of deposit and age. Consequently, we recommend that you speak to one of our brilliant team, 7 days a week, for a no obligation chat. We’ll help you establish accurately how much you can borrow, how much it will cost per month and therefore what your target purchase price range is. All based on your personal circumstances. It only takes around 15-20 minutes. No documents. No unwanted credit checks. Hassle free.

Q

What documents and evidence do first-time buyers need to supply?

A

We understand that gathering documents can be a bind but don’t worry, our team are on hand to help and we’ll only need documents if you choose us to apply for a mortgage. As a minimum, we’ll need name and address ID, proof of deposit, proof of income and bank statements showing income and bills.

Q

Is it hard to get a new build mortgage?

A

Not for us! Mortgage lender criteria can be complex, but there's no need to worry. Expert mortgage advisers, like ours at James Leighton, excel in navigating these intricacies. Lenders have specific rules for resale and new build properties, which they understand thoroughly. Choosing a new build specialist mortgage broker brings added advantages, such as access to dedicated underwriting teams, exclusive products, and even lenders not available through non-specialist brokers— all facilitated through our network Quilter Financial Planning. Your mortgage journey is in capable hands.

Q

Can you get a mortgage before the property is built?

A

Yes, you can apply for a mortgage on an off-plan property with most banks and building societies. However, our advisers will consider key factors such as the expected completion date and the validity of mortgage offers, which typically last 6 months. Developers often provide a typical completion window of 3 months which is usually around 4-6 months in the future, so you’ll need a mortgage offer that accommodates this and any potential build delays. Despite the complexity, our expert advisers are well-equipped to guide you through this process.

Q

When do you start paying the mortgage on a new build?

A

Typically, your initial mortgage payment occurs roughly two weeks after legal completion. The specific date depends on the lender and direct debit setup time. This first payment covers interest for the days between completion and month-end, plus the entire next month. Completing near month-end results in a smaller initial payment compared to an early-month completion. It's advisable to budget for a double mortgage payment for the first month as a precaution; a topic our advisers will discuss with you.

Q

My current mortgage has an Early Repayment Charge period that ends after my intended moving date. What should I do?

A

There are many factors to consider in situations like this and you should seek guidance from a professional mortgage adviser to avoid paying unnecessary penalties. A mortgage adviser will be able to help you weigh up the costs of porting, and possibly topping up, with your current lender against the potential benefits of changing to a new lender.

Q

How does a remortgage differ from a home mover mortgage?

A

A remortgage is when you replace your existing mortgage with one lender to one with another lender on the same property, perhaps to get a better deal or to borrow more money. If you transfer your existing mortgage terms to your onward purchase that is called porting. A home mover mortgage is a term to describe a new mortgage taken out by a home mover on their onward purchase.


When borrowing more money please note you should think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Q

Why should I use a broker for a home mover mortgage?

A

Using a mortgage broker as part of your property move can be beneficial and save time. The broker will be able to assess your exact situation and offer realistic and advantageous options. Many people choose to use a broker as part of a property move due to the additional and ongoing support provided during what is a complex process.

Q

How does the interest rate on a remortgage compare to the original mortgage?

A

This depends entirely on your circumstances. In general, your options are: Do nothing and roll onto the Standard Variable Rate, choose a new deal from your existing lender (called a Product Transfer) or change lender entirely (called a remortgage). However, there are so many other factors to consider and speaking to one of our specialist advisers is highly recommended - zero hassle and fee-free.

Q

What are the pros and cons of remortgaging to a fixed-rate mortgage over a variable-rate mortgage?

A

Fixed-rate mortgages mean fixed repayments which makes for easy budgeting and certainty for a number of years ahead. However, they lack flexibility because an early repayment charge will apply if you redeem the mortgage before the end of the fixed rate period. A variable rate product offers flexibility as they will usually have low or no early repayment charges (ERCs) and you might benefit if the Bank of England Base Rate drops.

Q

Can mortgage brokers help with remortgaging if I have complex financial circumstances and unsatisfactory credit history?

A

Yes, clients with complex financial circumstances, such as being self-employed, being a contractor, having adverse credit, owning multiple properties, holding foreign passports and many other reasons, are well advised to speak to a broker. They will be able to use their experience and knowledge about lender criteria to open access to more lenders, often saving you time and money.

Q

What is a Buy to Let mortgage?

A

A Buy to Let mortgage is a loan for purchasing or refinancing residential property which is intended to be let to tenants rather than lived in by the borrower. Rates and fees are typically higher than those you would find with a standard residential mortgage.

Q

How does the deposit for a Buy to Let mortgage work?

A

The deposit for a Buy to Let mortgage is typically larger than for a standard residential mortgage. This is often 25% of the property’s value but can range from 20-40%. The size of the deposit can affect the interest rate and terms of the mortgage.

Q

Who can get a Buy to Let mortgage?

A

Buy to Let mortgages are typically for landlords and property investors, both individuals and companies. Lenders look at potential rental income, personal income, credit history and age, among other factors. Some lenders may require you to own your own home or have a certain number of existing properties.

Q

What is the maximum Loan-to-Value ratio for Let to Buy mortgages?

A

Most Let to Buy mortgage lenders will offer a mortgage with up to a 75% LTV ratio. This means you will need to retain a 25% equity in the property even after accessing available equity to help fund the next property purchase. There might be some exceptions in the current market, which you can discuss with our Let to Buy mortgage advisers.

Q

Can I use the equity in my current property to buy a new home with a Let to Buy mortgage?

A

Yes, many homeowners use a Let to Buy mortgage to access some of their available equity, which is then used to contribute to the deposit for their next property purchase. There are pros and cons of accessing your equity, which our advisers will discuss with you and answer any of yout queries.

Q

What are typical interest rates for Let to Buy mortgages?

A

Let to Buy interest rates are subject to change and vary depending on current market conditions. However, you should expect Let to Buy interest rates to be comparable with Buy to Let mortgages. Our advisers can discuss current market conditions, so you have realistic expectations entering the mortgage market.

Q

Are Limited Company Buy to Let mortgages suitable for first-time investors?

A

Depending on your situation, preferences and long-term property investment goals, it could be beneficial to begin your investment journey by setting up a limited company from the outset. As this decision will depend on personal needs and objectives, it is best discussed with a professional mortgage adviser from our team who specialises in this area.

Q

What are the eligibility criteria for Limited Company Buy to Let mortgages?

A

Each lender will have their own lending criteria for a Limited Company Buy to Let mortgage. You could be expected to put down a greater deposit to secure the mortgage and subjected to more restrictive affordability stress tests compared to standard residential mortgages. This is to protect the lender but also for your financial safety.

Q

How does tax treatment differ for Limited Company Buy to Let investments?

A

Tax rules applied to Buy to Let investments held under a limited company structure are subject to different rules than if they were held personally. For example, limited companies don’t have to pay Capital Gains Tax when investments are disposed of. The tax rules are extensive and, because of that, we would always advise you to consult with a tax specialist.


Tax treatment varies according to individual circumstances and is subject to change.

Q

How does having a complex income structure affect my mortgage interest rate?

A

Your income structure doesn’t directly affect your mortgage interest rate. However, the more complex your income, the number of lenders that will accept you reduce which may mean that the number of deals available is less. Working with an experienced mortgage brokerage, like James Leighton, will ensure that the highest quality research is carried out and the maximum number of lenders are made available to you.

Q

Can I get a joint mortgage if my partner and I have complex incomes?

A

Yes, you can apply for a joint mortgage even if both you and your partner have complex incomes. Lenders will consider the total income from all applicants when assessing your mortgage application. However, you may need to provide additional documentation to verify your incomes.

Q

How can a mortgage broker help me?

A

A mortgage broker will carefully assess your income and, based on their experience and knowledge, identify the lenders who will offer you the best value mortgage. A broker will also communicate directly with underwriters and relationship managers at the lenders to make sure that the application runs smoothly.

Q

Can I get a mortgage with fluctuating income as a self-employed worker?

A

Yes, scores of lenders understand that many self-employed workers have fluctuating income and will still offer mortgage deals. Often it just requires the applicant to prove their income in different ways, such as providing tax returns rather than standard payslips. We work with you to help submit accurate information.

Q

Can I use business assets to boost my mortgage eligibility?

A

It’s possible to harness business assets to meet mortgage eligibility requirements. This may come with pros and cons, which are best discussed on a case-by-case basis with a qualified mortgage adviser. Our team has experience in this area and is always on hand to explain the details to you. 

Q

What are the specific requirements for self-employed mortgage applicants?

A

Self-employed workers usually need to prove their income by supplying previous tax returns and/or bank statements. Some lenders will require the applicant to have been self-employed for a minimum duration before considering them for a mortgage. However, not all lenders are the same and eligibility criteria differ.

Q

Is there a pre-determined rent calculation?

A

Yes! The housing association which owns part of your home will charge a rent of 2.75% of the value of their share of your property. For example, if you have a 50% Shared Ownership of a £200,000 property then the housing association owns £100,000 of it. Their annual rent of 2.75% would be £2750 per year, or £229.16 a month.

Our specialist mortgage advisers can help you work out if you can afford the rent and your mortgage payment on the half you own.

Q

Can anyone use the Shared Ownership scheme?

A

The Shared Ownership scheme is only for first-time buyers, existing Shared Ownership homeowners looking to move and people who have previously owned a home but aren’t in a position financially to buy one now. Contact our team today to confirm your eligibility.

Q

How much of the property can I buy?

A

You can buy between 10% and 75% of any home. However, the property must be owned by an approved not-for-profit housing association whose main aim is to supply housing. They’ll own the rest of the property and you’ll need to pay them rent.

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Protection

Q

What types of protection does James Leighton advise on?

A

The James Leighton team have vast experience in helping clients take out income protection insurance, life assurance, critical illness cover, family income benefit and even home insurance. Our team of skilled professionals cover all bases without compromising on results.

Q

How do James Leighton advisers calculate the right amount of cover?

A

All James Leighton advisers complete a comprehensive individual assessment with you to calculate the right amount of cover you need. Our advisers will consider multiple factors when calculating coverage, including but not limited to your lifestyle, financial obligations and future goals and obligations.

Q

Can James Leighton review and update existing protection policies?

A

Yes, our team is able to review your existing insurance and protection policies to make sure you’re fully protected for your ever-changing circumstances. Life events may mean your existing policies are no longer fit for purpose or may need adjusting. Contact our team for a personal assessment of existing policies.

Got another question?

If you cannot find the answer to your question above, drop us an email by clicking the button below and we'll be happy to answer it. You might even find it here the next time you visit!

Image showing a woman in business attire

James Leighton

Q

Can I use your mortgage services if I’m not buying a new build property?

A

Absolutely! We help clients across the UK with buying resale properties as well as new build properties, not forgetting remortgaging them too - our adviser's expertise covers a wide range of property types and mortgage options. There are no hidden fees or tiered levels of service, meaning that whatever support you require, it's provided to you without any cost, while maintaining the same high standard of excellence.

Q

Why should I use a mortgage adviser?

A

Choosing a mortgage adviser comes with a multitude of advantages. They have the expertise to pinpoint lenders who can provide you with the most favourable terms, tailored to your unique circumstances and preferences. They can guide you through the process, helping you sidestep common pitfalls. One of the key benefits is the peace of mind that comes with knowing you’re protected thanks to a formal complaints procedure. Zero hassle and peace of mind.

Q

How will you determine the right mortgage for me?

A

We believe that there is a right mortgage out there for everyone. But with a mind-boggling array of more than 90 lenders and 1000s of deals available to us, your friendly adviser will start by carrying out a fact find to establish not only the finer factual details of your financial circumstances but also your personal preferences and objectives. With the combination of skill, experience and great technology, you can be confident that we’ll find you the ideal mortgage.

Q

Can you help me understand which government schemes I might be eligible for?

A

Definitely! We're well-versed in government schemes like Shared Ownership and First Homes, as well as Deposit Unlock which was created by the Home Builders Federation. We will explain eligibility criteria, application processes and how it affects your mortgage options.

Q

I’d like to get financially qualified by you, what documents will I need?

A

You don’t need any documents at qualification stage. If you are looking at applying for a joint application, it would be useful to know the second applicant’s employment and salary information. Our friendly expert Qualifiers will ask you questions about your personal and financial circumstances in order to accurately assess your mortgage affordability. There is zero obligation to take our advice or use our services, you can simply call our Nottingham office for a chat!

Q

How do you make money if you are a completely free service?

A

We are proud to offer completely fee-free services. Every mortgage broker receives a commission from the lender once your mortgage is finalised. However, what sets us apart is that we don't burden you with any additional fees. You can hold on to your money for more exciting purchases, while we strive to transform your dream home into a reality.

Q

What else can you help with?

A

As a premium service mortgage brokerage, we’ll also be able to advise you on how to safeguard you and your family’s financial future with a suite of high-quality insurance products from carefully selected providers, such as life and critical illness cover, income protection, family protection and, of course, home insurance. We’re a one stop shop for all of your home finance needs.

Q

How can I make sure my financial plan is sustainable for the long term?

A

Financial planning should include a long-term vision to ensure any decisions you make today will be most suitable and beneficial over the following months, years and even decades. When accessing financial planning services, it is best to disclose your long-term goals, such as buying investment properties, starting businesses and even personal decisions like starting a family.

Q

What are the different ways to save for a rainy day?

A

There are many products that allow you to save money and earn interest, such as fixed-term bonds, ISAs, Stocks and Shares ISAs, and a myriad of investment products. Each comes with different levels of risk exposure, which should be considered before opting into any product. This can be discussed at length with our recommended savings and investment advisers.
 

This service is on a referral only basis.
 

Quilter Financial Planning accept no responsibility for this aspect of our business or any advice received from these referrals.

Q

How can I make sure my financial plan is updated as my circumstances change?

A

Although your initial financial plan may have accounted for your long-term milestones and important events, life can also be full of surprises. The best way to ensure your current plan is still suitable is to book regular financial planning consultations with your adviser. They may be able to recommend changes that could offer significant benefits in the years to follow. 

SHOW MORE

Mortgages

Q

What factors determine mortgage eligibility?

A

All banks and building societies have different lending criteria with many having particular strengths and weaknesses dependent on their appetite for risk, such as self-employed income or those with adverse credit. In all cases, lenders will consider your income, credit profile, size of deposit and the amount of your disposable income to determine your eligibility and affordability.

Q

What type of mortgage is most suitable?

A

There isn’t one type of mortgage that is better than others. The optimal mortgage for you can only be determined based on personal needs and preferences, as well as the current mortgage market which is influenced by the economy. To understand the most suitable mortgage options that are available right now, it’s worth engaging with one of our experienced mortgage brokers.

Q

How can I pay off my mortgage quicker?

A

Most mortgages allow for some level of overpayment without incurring early repayment penalties, usually up to 10% of the outstanding balance each year, which will help to reduce the term of the mortgage. One alternative option could be an offset product that will allow you to link your savings to your mortgage to help reduce the term of the mortgage. Our advisers will discuss all of the options available to you.

Q

How much money do I need to save for a deposit for my first home?

A

Of course, the more the merrier. However, we understand that is easier said than done. The great news is that there are loads of mortgage options and schemes available that will allow for as little as 5% deposit. At the time of writing, there are even some zero deposit options available for some buyers in certain circumstances. Whatever deposit you have, speak to our team to see what mortgage options are available and you might be surprised at what is possible.

Q

How can I estimate how much I can afford to borrow as a first-time buyer?

A

It’s actually quite difficult to estimate because there are so many factors affecting how much you can borrow, such as employment status, credit rating, size of deposit and age. Consequently, we recommend that you speak to one of our brilliant team, 7 days a week, for a no obligation chat. We’ll help you establish accurately how much you can borrow, how much it will cost per month and therefore what your target purchase price range is. All based on your personal circumstances. It only takes around 15-20 minutes. No documents. No unwanted credit checks. Hassle free.

Q

What documents and evidence do first-time buyers need to supply?

A

We understand that gathering documents can be a bind but don’t worry, our team are on hand to help and we’ll only need documents if you choose us to apply for a mortgage. As a minimum, we’ll need name and address ID, proof of deposit, proof of income and bank statements showing income and bills.

Q

Is it hard to get a new build mortgage?

A

Not for us! Mortgage lender criteria can be complex, but there's no need to worry. Expert mortgage advisers, like ours at James Leighton, excel in navigating these intricacies. Lenders have specific rules for resale and new build properties, which they understand thoroughly. Choosing a new build specialist mortgage broker brings added advantages, such as access to dedicated underwriting teams, exclusive products, and even lenders not available through non-specialist brokers— all facilitated through our network Quilter Financial Planning. Your mortgage journey is in capable hands.

Q

Can you get a mortgage before the property is built?

A

Yes, you can apply for a mortgage on an off-plan property with most banks and building societies. However, our advisers will consider key factors such as the expected completion date and the validity of mortgage offers, which typically last 6 months. Developers often provide a typical completion window of 3 months which is usually around 4-6 months in the future, so you’ll need a mortgage offer that accommodates this and any potential build delays. Despite the complexity, our expert advisers are well-equipped to guide you through this process.

Q

When do you start paying the mortgage on a new build?

A

Typically, your initial mortgage payment occurs roughly two weeks after legal completion. The specific date depends on the lender and direct debit setup time. This first payment covers interest for the days between completion and month-end, plus the entire next month. Completing near month-end results in a smaller initial payment compared to an early-month completion. It's advisable to budget for a double mortgage payment for the first month as a precaution; a topic our advisers will discuss with you.

Q

My current mortgage has an Early Repayment Charge period that ends after my intended moving date. What should I do?

A

There are many factors to consider in situations like this and you should seek guidance from a professional mortgage adviser to avoid paying unnecessary penalties. A mortgage adviser will be able to help you weigh up the costs of porting, and possibly topping up, with your current lender against the potential benefits of changing to a new lender.

Q

How does a remortgage differ from a home mover mortgage?

A

A remortgage is when you replace your existing mortgage with one lender to one with another lender on the same property, perhaps to get a better deal or to borrow more money. If you transfer your existing mortgage terms to your onward purchase that is called porting. A home mover mortgage is a term to describe a new mortgage taken out by a home mover on their onward purchase.


When borrowing more money please note you should think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Q

Why should I use a broker for a home mover mortgage?

A

Using a mortgage broker as part of your property move can be beneficial and save time. The broker will be able to assess your exact situation and offer realistic and advantageous options. Many people choose to use a broker as part of a property move due to the additional and ongoing support provided during what is a complex process.

Q

How does the interest rate on a remortgage compare to the original mortgage?

A

This depends entirely on your circumstances. In general, your options are: Do nothing and roll onto the Standard Variable Rate, choose a new deal from your existing lender (called a Product Transfer) or change lender entirely (called a remortgage). However, there are so many other factors to consider and speaking to one of our specialist advisers is highly recommended - zero hassle and fee-free.

Q

What are the pros and cons of remortgaging to a fixed-rate mortgage over a variable-rate mortgage?

A

Fixed-rate mortgages mean fixed repayments which makes for easy budgeting and certainty for a number of years ahead. However, they lack flexibility because an early repayment charge will apply if you redeem the mortgage before the end of the fixed rate period. A variable rate product offers flexibility as they will usually have low or no early repayment charges (ERCs) and you might benefit if the Bank of England Base Rate drops.

Q

Can mortgage brokers help with remortgaging if I have complex financial circumstances and unsatisfactory credit history?

A

Yes, clients with complex financial circumstances, such as being self-employed, being a contractor, having adverse credit, owning multiple properties, holding foreign passports and many other reasons, are well advised to speak to a broker. They will be able to use their experience and knowledge about lender criteria to open access to more lenders, often saving you time and money.

Q

What is a Buy to Let mortgage?

A

A Buy to Let mortgage is a loan for purchasing or refinancing residential property which is intended to be let to tenants rather than lived in by the borrower. Rates and fees are typically higher than those you would find with a standard residential mortgage.

Q

How does the deposit for a Buy to Let mortgage work?

A

The deposit for a Buy to Let mortgage is typically larger than for a standard residential mortgage. This is often 25% of the property’s value but can range from 20-40%. The size of the deposit can affect the interest rate and terms of the mortgage.

Q

Who can get a Buy to Let mortgage?

A

Buy to Let mortgages are typically for landlords and property investors, both individuals and companies. Lenders look at potential rental income, personal income, credit history and age, among other factors. Some lenders may require you to own your own home or have a certain number of existing properties.

Q

What is the maximum Loan-to-Value ratio for Let to Buy mortgages?

A

Most Let to Buy mortgage lenders will offer a mortgage with up to a 75% LTV ratio. This means you will need to retain a 25% equity in the property even after accessing available equity to help fund the next property purchase. There might be some exceptions in the current market, which you can discuss with our Let to Buy mortgage advisers.

Q

Can I use the equity in my current property to buy a new home with a Let to Buy mortgage?

A

Yes, many homeowners use a Let to Buy mortgage to access some of their available equity, which is then used to contribute to the deposit for their next property purchase. There are pros and cons of accessing your equity, which our advisers will discuss with you and answer any of yout queries.

Q

What are typical interest rates for Let to Buy mortgages?

A

Let to Buy interest rates are subject to change and vary depending on current market conditions. However, you should expect Let to Buy interest rates to be comparable with Buy to Let mortgages. Our advisers can discuss current market conditions, so you have realistic expectations entering the mortgage market.

Q

Are Limited Company Buy to Let mortgages suitable for first-time investors?

A

Depending on your situation, preferences and long-term property investment goals, it could be beneficial to begin your investment journey by setting up a limited company from the outset. As this decision will depend on personal needs and objectives, it is best discussed with a professional mortgage adviser from our team who specialises in this area.

Q

What are the eligibility criteria for Limited Company Buy to Let mortgages?

A

Each lender will have their own lending criteria for a Limited Company Buy to Let mortgage. You could be expected to put down a greater deposit to secure the mortgage and subjected to more restrictive affordability stress tests compared to standard residential mortgages. This is to protect the lender but also for your financial safety.

Q

How does tax treatment differ for Limited Company Buy to Let investments?

A

Tax rules applied to Buy to Let investments held under a limited company structure are subject to different rules than if they were held personally. For example, limited companies don’t have to pay Capital Gains Tax when investments are disposed of. The tax rules are extensive and, because of that, we would always advise you to consult with a tax specialist.


Tax treatment varies according to individual circumstances and is subject to change.

Q

How does having a complex income structure affect my mortgage interest rate?

A

Your income structure doesn’t directly affect your mortgage interest rate. However, the more complex your income, the number of lenders that will accept you reduce which may mean that the number of deals available is less. Working with an experienced mortgage brokerage, like James Leighton, will ensure that the highest quality research is carried out and the maximum number of lenders are made available to you.

Q

Can I get a joint mortgage if my partner and I have complex incomes?

A

Yes, you can apply for a joint mortgage even if both you and your partner have complex incomes. Lenders will consider the total income from all applicants when assessing your mortgage application. However, you may need to provide additional documentation to verify your incomes.

Q

How can a mortgage broker help me?

A

A mortgage broker will carefully assess your income and, based on their experience and knowledge, identify the lenders who will offer you the best value mortgage. A broker will also communicate directly with underwriters and relationship managers at the lenders to make sure that the application runs smoothly.

Q

Can I get a mortgage with fluctuating income as a self-employed worker?

A

Yes, scores of lenders understand that many self-employed workers have fluctuating income and will still offer mortgage deals. Often it just requires the applicant to prove their income in different ways, such as providing tax returns rather than standard payslips. We work with you to help submit accurate information.

Q

Can I use business assets to boost my mortgage eligibility?

A

It’s possible to harness business assets to meet mortgage eligibility requirements. This may come with pros and cons, which are best discussed on a case-by-case basis with a qualified mortgage adviser. Our team has experience in this area and is always on hand to explain the details to you. 

Q

What are the specific requirements for self-employed mortgage applicants?

A

Self-employed workers usually need to prove their income by supplying previous tax returns and/or bank statements. Some lenders will require the applicant to have been self-employed for a minimum duration before considering them for a mortgage. However, not all lenders are the same and eligibility criteria differ.

Q

Is there a pre-determined rent calculation?

A

Yes! The housing association which owns part of your home will charge a rent of 2.75% of the value of their share of your property. For example, if you have a 50% Shared Ownership of a £200,000 property then the housing association owns £100,000 of it. Their annual rent of 2.75% would be £2750 per year, or £229.16 a month.

Our specialist mortgage advisers can help you work out if you can afford the rent and your mortgage payment on the half you own.

Q

Can anyone use the Shared Ownership scheme?

A

The Shared Ownership scheme is only for first-time buyers, existing Shared Ownership homeowners looking to move and people who have previously owned a home but aren’t in a position financially to buy one now. Contact our team today to confirm your eligibility.

Q

How much of the property can I buy?

A

You can buy between 10% and 75% of any home. However, the property must be owned by an approved not-for-profit housing association whose main aim is to supply housing. They’ll own the rest of the property and you’ll need to pay them rent.

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Protection

Q

What types of protection does James Leighton advise on?

A

The James Leighton team have vast experience in helping clients take out income protection insurance, life assurance, critical illness cover, family income benefit and even home insurance. Our team of skilled professionals cover all bases without compromising on results.

Q

How do James Leighton advisers calculate the right amount of cover?

A

All James Leighton advisers complete a comprehensive individual assessment with you to calculate the right amount of cover you need. Our advisers will consider multiple factors when calculating coverage, including but not limited to your lifestyle, financial obligations and future goals and obligations.

Q

Can James Leighton review and update existing protection policies?

A

Yes, our team is able to review your existing insurance and protection policies to make sure you’re fully protected for your ever-changing circumstances. Life events may mean your existing policies are no longer fit for purpose or may need adjusting. Contact our team for a personal assessment of existing policies.