Mortgages Help
For what purposes are residential mortgages available?
Residential mortgages are available for the following purposes:
- Purchase of a residential property
- Remortgage of an existing secured loan
- Capital raising
- Additional borrowing for existing customers
- Scheme Transfers
What is the maximum percentage of the purchase price that you would advance?
The maximum loan we will advance is as follows:
- For home purchase and re-mortgages, 95% of the price or valuation of the property, whichever is the lower. Please refer to specific product details for maximum LTV. There is also a restriction on loans greater than £300,000.
- Re-mortgage for capital raising purposes are restricted to 80% LTV.
- Second homes / holiday homes must be strictly for the sole use of the borrower and dependent family members and must not be let. The maximum loan to value for such properties is 75% and applicants financial status must be sufficient to cover both loans (i.e. mortgage on first property plus new mortgage).
All applicants must find their deposit from their own resources however gifted deposits from relatives may be allowed dependant on individual circumstances. (The Society reserves the right to have sight of the source of deposit).
How do you calculate how much I / we can borrow?
The Society no longer assesses your borrowing capacity through income multiples and has developed a new Affordability Calculator which is now more tailored to your individual circumstances. Assessment of how much you can borrow is now calculated through a combination of your income, regular commitments and household / lifestyle expenditure.
In assessing affordability all unsecured loans have more than 6 months to run, credit cards and maintenance will be deducted. In addition, deductions will also be made for declared household and lifestyle expenditure which is compared against statistical data for accuracy.
To see how much you could borrow please visit your local branch or contact our Newcastle Direct Team on 0845 6064488 where one of our experienced mortgage advisors will be able to assist. To ensure that your assessment is as accurate as possible please can you provide our advisors with as much information regarding your personal income and expenditure. Information on monthly expenditure such as council tax, utility bills, insurances and loans / credit cards commitments will need to be provided.
What information is required to support a mortgage application?
The following information is normally required to support a mortgage application:
- For employed applicants, last three months' pay slips and most recent P60. Satisfactory references covering the last two years may also be sought.
- For self employed applicants, the last two years' audited/certified accounts plus a projection for the current financial year. Accounts must be audited / certified by a chartered or certified qualified accountant.
- Proof of payment for the preceding 12 months is required where the applicant has had a previous mortgage or has been a tenant and the data is not available via a credit check.
- For all forms of additional income which is being taken into account, documentary evidence will be required.
- In the event that the applicants are not registered on the electoral roll, they must supply proof of residence. Any utility bill, council tax bill, voters roll enquiries, bank statements or mortgage statements are acceptable, provided the original documents are supplied.
- The Society will be required to confirm identity. Acceptable documents include a passport or driving licence or a recent bank statement.
Do you have a minimum purchase price for property?
Yes - All properties must have a minimum purchase price and / or valuation of £40,000 whichever is lower.
Do I have to pay a "valuation fee"?
You must pay for a valuation fee. Alternative fees will be charged for special schemes. Please refer to product literature for details.
Do I have to pay a fee for a further advance?
An administration fee of £299 will apply for the application of a further advance.
What is the maximum term over which I can take my mortgage?
The normal term for a mortgage is 25 years, however the Society may consider a term up to 35 years. For further details please contact us.
If I pay by Direct Debit, when will my first mortgage payment become due, following completion?
Should completion of your mortgage take place prior to the 15th of the month, the Society will collect your monthly payment on the 1st of the following month. If completion takes place after the 15th, your first payment will be collected on the 15th of the following month and will then continue to be collected on the 1st of each month thereafter.
Why do the Society require a "consent to mortgage" form to be signed by anyone over 17 years of age, who will be residing in the mortgaged property but not party to the mortgage?
Under common law, any occupant over 17 years of age has rights to remain resident should for any reason it became necessary for the property to be vacated.
As mortgagor, you waive these rights by securing a loan on the said property. However any persons resident at the time of the mortgage inception, who are not party to the said mortgage, still hold these rights. By signing a consent to mortgage form they are waiving this right, should for any reason the Society need to take the property into possession.
What is Daily Interest?
Interest is calculated on the balance of the account at the end of each day. Interest is then accrued daily and added to the account balance on the last day of every month. This means every cleared payment that is made reduces the mortgage balance and interest is recalculated on the reduced balance. Full written quotations available on request.
What Is a Guarantor Mortgage?
A Guarantor Mortgage is a simple solution designed to cater for young professionals who would like to take out a mortgage on a property, which, because of its value and mortgage repayments they are unable to cover, based on their own income and / or assets.
The Guarantor Mortgage allows a close relative of the borrowing applicant, usually a parent, to provide assistance to the borrower by providing a guarantee for the shortfall, or proportion of the loan which cannot be adequately covered by the borrower's earnings.
A first charge will be required as security. All mortgages are subject to suitable security status and valuation and are not available to persons under 18 years of age. APRs are typical and variable.