Mortgage & Protection FAQs

Buying a home, moving, remortgaging or arranging protection can bring up a lot of questions. My aim is to make the process straightforward and explain things in plain English, whether you’re completely new to mortgages or have owned property for years.

Below, I’ve answered some of the questions I’m most commonly asked about mortgages, how I work and what you can expect when you get in touch.

oliver.smith@themoney-group.co.uk

07728511059

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

About Oliver Smith Mortgage Broker

Who is Oliver Smith?

I’m a Mortgage & Protection Adviser based in Sale, Greater Manchester. I help people understand their mortgage options, from first-time buyers purchasing their first property through to homeowners moving, remortgaging or looking at additional borrowing.

My approach is personal and straightforward. I take the time to understand your circumstances before recommending anything and explain the process without unnecessary jargon.

What mortgage qualifications do you hold?

I hold the Certificate in Mortgage Advice and Practice (CeMAP) and the Certified Practitioner in Specialist Property Finance (CPSP).

CeMAP is my mortgage advice qualification, while CPSP has given me additional knowledge of specialist property finance.

My current Oliver Smith Mortgage Broker service is primarily focused on residential mortgages and protection.

Where are you based?

I’m based in Sale, and much of my local work covers Trafford, Manchester and Cheshire, including areas such as Altrincham, Timperley, Hale, Knutsford, Wilmslow, Prestbury and Hale Barns.

However, you do not need to live locally to work with me.

Can you help me if I live outside Manchester or Cheshire?

Yes. My mortgage service is completely remote, so I can work with clients throughout the UK by phone, email and video call.

Documents can also be provided electronically, meaning you don’t need to travel to an office for appointments.

Do I need to visit you in person?

No. Most clients are happy dealing with everything remotely.

If you’re busy with work, family or simply prefer doing things digitally, appointments can be arranged around you without needing to travel.

Mortgage Advice and Fees

Is mortgage advice free?

Yes. There is no charge for having an initial conversation with me or receiving mortgage advice.

A broker fee is only payable once your mortgage application is completed.

I will explain any applicable fee clearly before you proceed so that you understand the cost of the service.

Can I speak to you even if I'm not ready to apply?

Absolutely. In fact, I often think speaking to a broker earlier is better.

You might simply want to know how much you could potentially borrow, what deposit you should aim for or whether something in your circumstances could affect a future application.

You do not need to have found a property before getting in touch.

Will you tell me if I’m not ready for a mortgage yet?

Yes. The aim is not to submit a mortgage application at any cost.

If there is something that could put you in a stronger position by waiting, saving more, reducing a commitment or allowing more time to pass, I’ll explain that.

Sometimes the best mortgage advice is to prepare first and apply later.

First-Time Buyer FAQs

When should a first-time buyer speak to a mortgage broker?

Ideally, before you start seriously making offers on properties.

We can look at your deposit, income and financial commitments to establish what may be realistic.

That means you can search for property with a much clearer idea of your budget.

How much deposit do I need to buy my first home?

The deposit required depends on the mortgage products and lender criteria available to you.

Some buyers may be able to purchase with a relatively small percentage deposit, while putting down more can reduce the amount you need to borrow and potentially give you access to different mortgage products.

I can compare different deposit levels with you rather than simply assuming you should put down every penny you have.

Should I use all of my savings as a deposit?

Not necessarily. A larger deposit can be useful, but you should also think about the money you may need after buying.

That could include conveyancing, a survey, moving costs, furniture, repairs and emergency savings.

I prefer looking at the full picture rather than leaving someone with a property but virtually no accessible cash.

What is an Agreement in Principle?

An Agreement in Principle, sometimes called an AIP, Decision in Principle or Mortgage in Principle, is an initial indication from a lender of what it may potentially be prepared to lend based on certain information.

It is not the same as a formal mortgage offer.

The lender will still need to assess the full application, supporting documents and the property before issuing a mortgage offer.

Do I need an Agreement in Principle before viewing houses?

You do not normally need one simply to view a property.

However, having an understanding of your mortgage position before making offers can make the process much easier.

Estate agents may also ask whether you have an Agreement in Principle when assessing how ready you are to proceed.

Can my parents help with my deposit?

Potentially, yes.

Gifted deposits from family members are common, although lenders and solicitors will normally want to understand where the money has come from and whether it is genuinely a gift rather than money that needs to be repaid.

Tell me about a gifted deposit early so we can consider lender requirements properly.

Can I buy a property on my own?

Yes, subject to affordability and lender criteria.

You do not need to buy with a partner to obtain a mortgage.

We can look at your individual income, deposit, commitments and comfortable monthly budget to understand what might be achievable.

Does buying alone mean I will need a huge deposit?

Not necessarily. The deposit requirement depends on the mortgage and your circumstances rather than simply whether you are buying alone or jointly.

The bigger issue for a single applicant is often that only one income is supporting the mortgage.

What other costs should first-time buyers budget for?

The deposit is only part of the cost of buying.

You may also need to budget for conveyancing, surveys, mortgage-related fees where applicable, insurance, removals, furniture and other costs associated with moving into and maintaining your new home.

Mortgage Affordability

How much can I borrow for a mortgage?

There isn’t one universal income multiple that applies to everyone.

Mortgage affordability can depend on your income, existing financial commitments, deposit, mortgage term, dependants and individual lender criteria.

That is why I prefer running the numbers based on your actual circumstances rather than giving a generic figure.

Should I borrow the maximum a lender will offer?

Not automatically. The maximum available mortgage should be treated as a limit rather than a target.

I also want to understand what monthly payment feels comfortable for you and how much money you want left for savings, holidays, family life and everything else outside the mortgage.

Does car finance affect a mortgage?

It can. The monthly finance payment may be included when a lender assesses your affordability.

Having car finance does not automatically mean you cannot get a mortgage.

Before using deposit savings to clear a car agreement, it can be worth comparing both situations because retaining the deposit may sometimes be more useful.

Do credit cards affect how much I can borrow?

They can. A lender may take existing balances and monthly commitments into account when assessing affordability.

Again, having a credit card does not automatically prevent you obtaining a mortgage.

Should I clear my debts before applying for a mortgage?

Not automatically. Clearing a commitment can sometimes improve affordability, but using savings to clear debt may also reduce your available deposit.

I would rather compare the impact of both options before you make a large repayment purely for mortgage purposes.

Does childcare affect mortgage affordability?

It can. Regular childcare costs can form part of your household expenditure and may therefore influence mortgage affordability.

This is why two households with the same income can have very different borrowing positions.

Self-Employed Mortgage FAQs

Can I get a mortgage if I'm self-employed?

Yes. Being self-employed does not automatically prevent you getting a mortgage.

The important thing is understanding how your income is structured and which lenders may assess it appropriately.

Who counts as self-employed for mortgage purposes?

Self-employed applicants can include sole traders, limited-company directors, partners, freelancers and contractors, although lenders may assess these structures differently.

How do lenders assess a company director?

It depends on the lender. Your income might include salary and dividends, while some lenders may take a different approach depending on the company, accounts and their individual criteria.

This is one area where lender selection can make a significant difference.

How many years of accounts do I need?

Requirements vary between lenders.

Having a longer trading history can give you more lender options, but having a shorter history does not automatically mean you cannot get a mortgage.

I can look at your circumstances and identify which lenders may be worth considering.

What documents might a self-employed applicant need?

Depending on your structure and lender, you may be asked for documents such as accounts, tax calculations, Tax Year Overviews or business bank statements.

I’ll explain what is likely to be required for your particular application.

My latest business year was much better. Will lenders use it?

Potentially. How lenders treat rising income varies.

Some may average figures while others may take a different approach depending on the business and their criteria.

This is another reason I like reviewing self-employed cases individually rather than applying a generic rule.

Moving Home

Can you help me move my existing mortgage to a new house?

Potentially. If your existing mortgage is portable, it may be possible to take the mortgage product with you when you move.

However, porting is not automatic. You normally need to meet the lender's current affordability and lending criteria, and the new property must also be acceptable.

What happens if I need to borrow more when I move?

If the mortgage you are porting is not large enough for the new property, you may potentially need additional borrowing.

That additional borrowing may be arranged on a different mortgage product from the existing part.

I can help you understand how the different elements fit together.

How do I work out how much equity I have?

Broadly, equity is the difference between your property's value and the outstanding mortgage.

However, the amount available towards your next purchase may also need to take account of selling costs, early repayment charges and other moving expenses.

Should I sell my home before applying for a new mortgage?

Not necessarily. We can usually start understanding your mortgage position before the sale completes.

Your circumstances, onward purchase and property chain will influence the practical process.

Remortgage FAQs

What is remortgaging?

Remortgaging normally means replacing your existing mortgage with a new mortgage, often with another lender, while remaining in the same property.

People remortgage for many reasons, including when their current deal is ending, to review their mortgage rate or term, or potentially to raise additional funds.

When should I start looking at remortgaging?

I generally think it is sensible to begin reviewing your options several months before your existing deal ends rather than leaving everything until the last minute.

This gives you time to understand the existing mortgage, any early repayment charges and what alternative options may be available.

What happens when my fixed mortgage rate ends?

If you do not arrange another mortgage product, you would normally move onto the lender's reversion rate, which is often its Standard Variable Rate.

This is why knowing your mortgage product end date is important.

Do I have to change lender when my mortgage deal ends?

No. Your current lender may offer another product through a product transfer.

It can be worth comparing that with suitable options from other lenders rather than assuming staying or leaving is automatically best.

Is remortgaging always worth it?

No. You need to consider the interest rate alongside product fees, legal costs where applicable, valuation costs, early repayment charges and the size of the mortgage.

For someone with a relatively small remaining mortgage, paying a large product fee to obtain a slightly lower rate may not make financial sense.

Can I remortgage to borrow more money?

Potentially. Homeowners sometimes consider additional borrowing for home improvements or other purposes.

The lender would need to assess affordability, loan-to-value and the reason for the additional borrowing.

Different Types of Mortgage

What is a fixed-rate mortgage?

A fixed-rate mortgage keeps your mortgage interest rate unchanged for an agreed product period.

This provides greater payment certainty because normal movements in wider interest rates do not change the rate you have already fixed.

What is a tracker mortgage?

A tracker mortgage normally follows a specified reference rate, often the Bank of England Base Rate, plus an agreed margin.

This means the mortgage rate can move both up and down.

Is a fixed or tracker mortgage better?

Neither is universally better. A fixed rate gives you greater certainty.

A tracker exposes you to changing interest rates but may provide different flexibility depending on the product.

The right choice depends on your circumstances and attitude towards changing payments.

What is a discount mortgage?

A discount mortgage is normally priced at a set discount from the lender's own variable rate for an agreed period.

Unlike a tracker, it does not necessarily follow Bank Rate directly.

What is an offset mortgage?

An offset mortgage links savings to your mortgage so the savings can reduce the amount of mortgage balance on which interest is calculated.

The savings typically remain accessible, although the exact product terms vary.

What is a flexible mortgage?

A flexible mortgage can include features allowing greater control over repayments.

Depending on the product, that might include overpayments, underpayments or payment holidays.

The term “flexible mortgage” does not guarantee every feature, so the individual product conditions matter.

What is a capped-rate mortgage?

A capped-rate mortgage is a variable mortgage where the interest rate can change but cannot rise above an agreed maximum during the capped period.

Availability of these products can be much more limited than mainstream fixed mortgages.

What is a repayment mortgage?

With a repayment mortgage, your monthly payment includes both mortgage interest and repayment of some of the capital borrowed.

Assuming all contractual repayments are made, the mortgage is designed to be repaid by the end of the agreed term.

What is an interest-only mortgage?

With an interest-only mortgage, the regular contractual payment normally covers the interest rather than repaying the mortgage capital.

A credible repayment strategy is therefore needed to repay the outstanding capital at the end of the mortgage term.

Interest-only mortgages can also be subject to stricter lender criteria.

Mortgage Applications

What documents will I need for a mortgage?

The exact requirements depend on your circumstances and lender.

Typically, lenders may ask for identification, evidence of income, bank statements, deposit evidence and details of existing financial commitments.

Self-employed borrowers may need additional business and tax documentation.

Why does a mortgage broker need my bank statements?

They can help evidence your financial circumstances and may be required by a lender during the application process.

If I ask you for a document, I’m happy to explain why it is needed.

What happens after I submit a mortgage application?

The lender will assess the application, supporting documents, affordability and property.

A valuation may also be required.

The lender may ask for further information before reaching a decision.

What is mortgage underwriting?

Underwriting is the lender's detailed assessment of the mortgage application.

An underwriter may look at your income, commitments, credit profile, supporting documents and other aspects of the application.

Does the lender asking for another document mean something is wrong?

No. Requests for further information are common and do not automatically mean an application is in difficulty.

Sometimes the lender simply needs another piece of evidence before it can complete its assessment.

How long does a mortgage application take?

There is no guaranteed timescale. It can depend on the lender, complexity of the application, property valuation, documents and whether further information is required.

I will keep you updated as the application progresses.

Can a mortgage still be declined after an Agreement in Principle?

Yes. An Agreement in Principle is not a guaranteed mortgage offer.

The full mortgage application, supporting documentation and property still need to meet the lender's requirements.

Property Valuations and Surveys

What is a mortgage valuation?

A mortgage valuation is primarily carried out for the lender to help it determine whether the property is suitable security for the mortgage.

It is not necessarily a detailed inspection of the condition of the property.

Is a mortgage valuation the same as a survey?

No. A survey is intended to provide you with more information about the condition of the property.

The lender's valuation is primarily for mortgage purposes.

What happens if the lender values the property below my offer?

This is commonly referred to as a down-valuation. It can affect the mortgage amount, loan-to-value or deposit required.

Depending on the situation, you may need to consider renegotiating, contributing a larger deposit or reviewing the mortgage options.

Can a lender refuse to mortgage a particular property?

Yes. Lenders have property criteria as well as borrower criteria.

Certain construction types, lease terms, locations or property conditions can potentially affect lender appetite.

Credit History FAQs

Do I need perfect credit to get a mortgage?

No. Different lenders have different approaches to credit history.

A previous missed payment or other credit issue does not automatically mean you cannot obtain a mortgage.

Should I check my credit report before applying?

I think it is sensible. It gives you an opportunity to understand what information is recorded and identify anything you believe may be incorrect before a mortgage application is submitted.

Will one missed payment stop me getting a mortgage?

Not necessarily. A lender may consider what was missed, how long ago it happened, the amount involved and your credit behaviour since.

Tell me about anything you are concerned about before we approach lenders.

I've been declined for a mortgage before. Can you still help?

Potentially, yes. The important thing is understanding why the previous application was declined. That could be affordability, credit, income, property criteria or something specific to that lender. I would rather understand the reason before considering another application.

Protection FAQs

Do you also offer protection advice?

Yes. Alongside mortgages, I can help clients consider protection such as life insurance, critical illness cover and income protection.

Why should I think about protection when taking a mortgage?

A mortgage can be one of the largest financial commitments you ever take on.

Protection is about considering how your mortgage and household finances might be affected if something unexpected happened, such as death, serious illness or being unable to work.

What is life insurance?

Life insurance is designed to pay out in accordance with the policy terms if the insured person dies during the policy term.

People often consider life cover when they have a mortgage, dependants or somebody financially reliant on their income.

What is critical illness cover?

Critical illness cover is designed to pay out if you are diagnosed with a specified critical illness covered by the policy and meet the policy definition.

The illnesses and definitions covered vary between providers.

What is income protection?

Income protection is designed to provide an income if you are unable to work because of illness or injury, subject to the terms and conditions of the policy.

Do I need every type of protection?

Not necessarily. Protection should be based on your own circumstances, existing cover, budget and priorities.

The aim isn't to buy every policy available. It is to understand the financial risks and decide which areas you want to protect.

Working With Me

What happens when I first contact you?

We’ll start with a conversation about what you’re trying to achieve.

That could be buying your first home, moving, remortgaging or simply finding out what may be possible.

I’ll ask questions about your circumstances so I can understand the situation properly before looking at mortgage options.

Why do you ask so many questions?

Because mortgage advice needs more than a salary and property price.

Your income structure, deposit, financial commitments, property, future plans and preferred monthly budget can all influence which mortgage may be appropriate.

The questions help me understand the complete picture.

Will you explain why you recommend a particular mortgage?

Yes. I want you to understand why a mortgage is being recommended, including important factors such as the rate, fees, term, early repayment charges and relevant flexibility.

You should never feel as though you simply have to accept a lender because I have told you to.

Will you keep me updated after the application is submitted?

Yes. Communication is an important part of how I work. I’ll keep you updated on progress, let you know if the lender requires anything further and explain what is happening where necessary.

Can I ask questions during the process?

Absolutely. Ask as many as you need. I’d much rather explain something again than have you feel unsure about what is happening with your mortgage.

Do you only help people in Sale?

No. Sale is my local base and I work extensively across Trafford, Manchester and Cheshire, but my service is remote and I can help clients throughout the UK.

How do I get started?

Simply get in touch. You don't need to know which mortgage you want or even whether you're definitely ready to apply.

Tell me what you're hoping to do and we can start from there.

Oliver Smith Mortgage Broker

Website: www.oliversmithmortgagebroker.co.uk
Telephone: 07728 511059
Email: oliver.smith@themoney-group.co.uk