Mortgage guides

Here are some of the most commonly asked questions about the mortgage process. Please select the type of mortgage guides you are searching for from the options below.

First time buyer guides

Buy to let guides

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First time buyer guides

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First time buyer guides

It's easy to navigate the mortgage process when you have a broker that really understands your situation and budget. We'll pull together all the information you need, spending time with you to get everything just perfect.

We'll ask you questions like:
  • What are your plans for the future?
  • What type of job do you do?
  • What's your income and pay structure?
  • What are your family circumstances?

We'll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence.

That way, when you're ready to make a decision, you can do so knowing that you've got all the facts.

Our mortgage advisers work closely with you to save you time and give you the very best chance of a successful application.

During the application process, we'll:

  • Talk you through all your options with a free consultation
  • Recommend the right mortgage for your situation
  • Check how much you can afford to borrow
  • Help you to gather the information and documents you need for your application
  • Help you prepare your application for submission
  • Submit your application to the lender
  • Liaise with the lender, solicitors and estate agents.

Once your mortgage has been offered, we'll support you all the way through to completion.

We'll work hard to build a lasting relationship with you.

So you'll always have someone you trust to help with any queries or requirements in the future.

We want to make buying a property as simple as possible. The process may sound complex, but we take away all the stress and manage all the paperwork for you.

Here's an overview of what happens:

  • First, we'll work with you to set your mortgage budget
  • You start the exciting bit ‐ viewing properties
  • We help you make and secure an offer on the place you want
  • You instruct a solicitor to handle the legal side of things
  • We finalise and submit your mortgage application to your chosen lender
  • They will survey the property to make sure the mortgage you want is reasonable
  • Once they are happy with the valuation, they'll make you an official mortgage offer
  • Your solicitor completes the legal process so you can exchange contracts and pay your deposit

That's it! The home is now yours and it's time to collect the keys.

Here's our step-by-step guide
  1. Before you start looking for a property, it's important to speak to one of our advisers. We'll use our expertise to help you work out how much you can borrow, set a budget, and decide what types of properties you will be able to get a mortgage for. It is important to speak to one of our advisers about an Agreement in Principle.
  2. Next, it's time to register with estate agents, getting a property valuation (if you're already a homeowner) and start viewings. You'll be able to really focus your search because you'll know exactly what your finances will cover.
  3. The property market moves fast, so once you've found a place you like, put in an offer as soon as you can. You'll likely then negotiate with the seller on price. When your offer is accepted, the estate agent may ask you for a deposit.
  4. Next, we'll help you find a property solicitor or licensed conveyancer. They'll handle all the legal paperwork for you, and it's a good idea to use a professional who knows the area you want to move to. Later in the process they'll also manage the exchange of contracts, deposit payment and money transfers from the lender to the seller. They're experts so you can relax knowing it's all in safe hands.
  5. There's now a further opportunity to fine-tune the details of your mortgage application. We do all this for you, and submit the application on your behalf.
  6. The lender will then survey the property to make sure that it's suitable for the mortgage. We recommend that you arrange a separate valuation too. This will give you peace of mind that the lender has made a fair assessment. There are two options available for this: a Homebuyer's Report or the more comprehensive Building Survey. If that sounds complicated, don't worry ‐ we can recommend independent surveyors you can trust.
  7. You'll get a mortgage offer once the lender is happy with everything. This will be sent to you and your solicitor so together you can check it over carefully before signing. Send it back to the lender and your mortgage is in place.
  8. It's time to exchange contracts with the seller. You'll pay a 10 per cent non-returnable deposit and now you're committed to buying. If you pull out after that, you won't get the deposit back and may have to pay extra costs. As soon as you exchange contracts, it's your responsibility to insure the property so you must have buildings insurance cover.
  9. It can take anything from a few days to a few weeks to complete the sale once you've exchanged contracts. In this time the remaining money (usually the 90 per cent not covered by the deposit) is transferred from your solicitor to the buyer's. On completion day, a few legal details are tied up, you get the keys, and the place is yours.

Top tip: Be prepared

Make sure you arrange insurance early in the process, because you can't exchange without it. We can help you with this and recommend providers.

Getting a mortgage is important, but it doesn't have to be complicated. We'll handle every step for you, deal with all the paperwork and take away all the hassle. Here's a quick overview of how the process works and how we will help you:

  • We'll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you're looking for properties in the right price bracket.
  • We'll explain all the documentation we'll need to put together to support your application.
  • Once you've found a property, we'll find your ideal mortgage and manage the application process for you. We'll make it as simple as possible.
  • The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it's affordable for you. This might include asking for a reference from your employer or accountant
  • Once the lender's happy with all the checks, they'll make a formal mortgage offer. Then we'll help you complete the legal details and exchange contracts with the seller. We'll be there to talk you through every single piece of paper so you don't need to worry about a thing.

Want more detail about the process?

Here's our step-by-step guide
  1. It's best to speak to us before you start looking at properties. We can help you narrow down your search by focusing only on homes within your price range. This will save you time so you find your perfect place quicker.
  2. Here's what will happen when you first meet one of our advisers:
    1. We'll get to know you and how much you already understand about mortgages.
    2. We'll pull together all the information and documents a lender will need from you, ready for when you make an application.
    3. With your permission, we'll carry out a credit check with the lender to produce an Agreement in Principle (AIP).

Top tip: You're in safe hands

We know that making multiple credit checks can affect your credit rating, but don't worry, we are experts in this area. We'll only do what's necessary to make sure you get the best possible mortgage.

  1. Once you've got your AIP, you can start looking for properties with total confidence. You'll know exactly what your budget will cover and what types of home lenders will approve a mortgage for.

Top tip: We're with you all the way

Bear in mind that not all lenders approve mortgages on all types of property. Chat things through with us regularly during your property search and we'll make sure you stay on the right track.

  1. Found a great property and had an offer accepted? That means it's time for another meeting with us. Here's what we'll cover:
    1. We'll recap all the information we put together when we first met. Things move quickly now, so it's important we have all the right documents to hand.
    2. Then we'll go through the fine detail about your lender's policy to give you complete confidence about going forward. The great thing about working with Alexander Hall is that we've got excellent relationships with lenders and we can often speak directly to them to make sure everything is in order. This means no surprises and a much better chance of success.
    3. We'll submit the mortgage application on your behalf. As with everything we do, you don't need to worry about complex paperwork - we'll handle every detail for you.
  • We'll double and triple check your application to make sure that it's as strong as it can possibly be. Once we submit it to the lender, it goes to their underwriter. It's their job to make sure all the documents are in order. They'll also organise a mortgage survey to check the property is something they're happy to lend money for.
  • Top tip: We've got great connections

    1. Because we've built strong relationships in the industry, we can sometimes chat directly to your underwriter. This is a huge help for you because it means we can fine-tune the application to maximise your chances of success.
    2. You'll get a mortgage offer once the lender is happy with your application. The time it takes depends on the lender, but in general it tends to be quicker when you've got a broker like us on your side to work directly with them. We make sure they've got everything they need to make a decision.
    3. Some mortgage brokers finish working with you once you've got your offer. We do things differently at Alexander Hall. We'll stay in touch with you, your estate agent, solicitor and surveyors all the way through to completion. We'll keep in contact with you after that too, making sure that as and when your needs change, your deal remains the most suitable and competitive on the market.

    New build normally means it either hasn't been built yet, or it's been completed but never sold or occupied (including show homes).

    Many mortgage lenders also count new builds as:

    • any conversion (such as a townhouse into flats)
    • a substantially renovated or extended property
    • homes built in the last couple of years

    New builds are a popular choice, particular for first-time buyers. Many housing associations offer you the option of shared ownership.

    Read More

    We can help you decide if a new build is the right choice. One benefit is that you can often tailor the specifications to your own taste, and you can move in immediately, no need for any improvements and no previous owners to worry about.

    There are some extra points to consider though, and we can help you think it all through:

    Holding deposit and exchange deadline

    Normally you need to give a holding deposit to the developer when buying a new build. Terms and conditions vary so we'll tell you exactly what to look for when you check through them. One key point is on refunds ‐ will you get the deposit back if you don't secure a mortgage or you change your mind?

    Alongside deposits, the developer will expect you to exchange contracts within a short timeframe, usually four weeks. The developer may let other people reserve a property if this timeframe is not met. Exchanging contracts will commit you and the developer to going ahead, so it is important you get the right mortgage quickly to avoid any last-minute worries.

    This means buying a property based on the specifications, but before it's built. It can take up to 12 months ‐ sometimes longer ‐ for an off‐plan property to be finished and ready for you to move in.

    When buying at this very early stage, it's a good idea to ask your developer when you'd be expected to complete. This is because you might want your mortgage lender to extend or renew their offer, sometimes more than once. You can end up paying multiple additional fees for re‐valuation.

    When you're buying off‐plan, it's a good idea to speak to your mortgage broker to find out what to ask your developer. We can advise you on everything you need.

    What about off‐plan mortgage offers?

    Many mortgage offers are valid for six months. Some lenders' timescales are longer, and others will offer allowances for extending mortgage offers, as long as your circumstances don't change.

    After a certain period, your lender may ask their surveyor to conduct a re‐inspection or re‐valuation of your property. This confirms that the property's expected value is still in line with the amount you need to borrow.

    We give you exclusive access to special new build services from some lenders. These can streamline the whole buying process and improve the likelihood of a successful purchase. They can be particularly helpful when your estimated completion date is far in the future. Give us a call to find out more. We're always happy to help.

    What about deposit requirement and loan to value (LTV)?

    Normally the value of a property can be assessed by looking at how much previous owners bought it for. This sort of information isn't available for a new build though, particularly if it's in an undeveloped area such as a new suburb.

    To increase their security, some lenders will limit the maximum loan to value (LTV) they offer for new build properties. In some cases, additional limitations will also apply if you're buying a flat. This means that to secure a mortgage in these cases, most lenders will need a larger deposit.

    We give you comprehensive access to lenders who will offer you a mortgage on a new build property and those who accept smaller deposits.

    Get in touch and we can talk you through it all.

    In basic terms, this is where one person agrees to buy a property off‐plan, but sells it on before completing. If we talk about Buyer A and Buyer B, this is how it works:

    • Buyer A exchanges contracts and puts down a deposit.
    • Before completing they agree to sell to Buyer B, typically at a higher price.
    • Buyer A “reassigns” the contract to Buyer B.
    • Buyer B now has the rights to complete the transaction.

    If you buy a property on a reassigned contract you could end up paying less that the latest market price. For example, the original buyer could pay £275k, and the property could go up in value to £350k before they decided to sell on the contract. To make a quick sale, they could offer it to you for £325k, so you both get a good deal.

    You also don't have the long completion date often associated with off‐plan purchases, but it does come with additional risks. Many lenders won't offer a mortgage based on contract reassignment, so it's important to seek detailed legal advice from your solicitor and discuss it with your mortgage adviser.

    We give you access to a number of lenders happy to consider contract reassignment purchases, with some limitations. If you want to take this route, feel free to give us a call and talk it through. It's important we know all the details of your purchase, so we can make sure you get the best advice for your particular circumstances.

    Can you buy from abroad through contract reassignment?

    New build developments are an attractive option if you're overseas and want investment property in the UK.

    We give you access to lenders who'll consider applications from non‐UK citizens and UK ex‐pats for both standard off‐plan purchases and contract reassignments.

    If you need to transfer funds to the UK, we recommend our currency exchange partner. Just call us for more details ‐ we're always happy to talk things through.

    What government schemes are available to help me buy my home?

    Over the years, the government has introduced a number of different schemes to help. They are designed to make it easier to own your own home, at a time when property prices are rising faster than many people's incomes.

    The two main schemes currently available are Shared Ownership, which involves a housing association or housing authority, and the government's scheme.

    If you're a first-time buyer, a Shared Ownership scheme is another useful option. This is how it works:

    • You buy a share of between 25% and 75% of your new home.
    • You pay a subsidised rent on the remaining share to the housing association or housing authority, along with a monthly service charge.

    The share you can purchase will depend on the vendor, what you can afford and the eligibility criteria.

    Who is eligible?

    This can vary slightly between different housing associations. However, shared ownership is normally only available if you're a first-time buyer. Some housing associations also consider non-first time buyers in certain circumstances. This could be if you're buying your first property alone after a divorce or family breakdown.

    Other exceptions will depend upon the housing association's individual terms. Many housing associations require buyers to be UK/EU/EEA citizens while others will consider non-UK citizens, subject to visa status.

    Staircasing

    This means buying additional shares in a Shared Ownership property. You can do this at any time, normally at a minimum of a further 10% share each time. The housing association instructs an RICS surveyor to conduct the valuation and normally as you are the applicant, you pay the valuation fee. The current market value will dictate the price you pay.

    Stamp Duty Land Tax (SDLT)

    When you buy a share in a property, you're liable to pay Stamp Duty Land Tax (SDLT).

    You can pay it in two ways:

    A one-off payment.
    This is based on the total market value of the property at the time of the original purchase. This is known as making a ‘market value election’.
    In stages.
    You may make your first payment on the price you pay for the lease, but only if it's above the SDLT threshold. Once you increase your share of the property to 80%, you then must pay on both the transaction that took you over that percentage, and any further transactions.

    If you're purchasing a Shared Ownership property, ask your solicitor for advice on which SDLT payment option is best for you.

    We give you access to a number of lenders who'll consider a shared ownership application. Currently, the minimum deposit required is just 5% of the property's full market value.

    See our stamp duty calculator

    There's a common myth that the self-employed find it hard to get a mortgage. While the options will vary, there are a number of competitive solutions. To learn more, it's essential to talk to a knowledgeable mortgage adviser.

    A number of lenders specialise in self-employed mortgages and have developed a range options that rely on different criteria.

    This can include:
    • Lending against your most recent year's income, rather than an average of the last two or three years
    • Lending against your company net profit - rather than just salary and dividends to reach a potentially more positive lending amount
    • Consideration of your daily rate if you're a contractor.

    Lenders will need to see specific documentation if you're self-employed. This will depend on your circumstances and we can advise on exactly what it means for you. It's best to discuss this with us as soon as possible to give you enough time to pull everything together.

    Sole trader, director, contractor or partner?

    The type of self-employed role you have affects how a lender assesses your suitability. Here's a brief overview of the main considerations:

    Sole trader

    Most lenders ask for a minimum of two years' of your full trading accounts and personal HMRC tax overviews. They'll typically also take the average of either two or three years' of your net profit before tax.

    Some lenders will consider an application if you have only one full trading year, though this depends on your circumstances. For example, have you have switched from employed to self-employed in the same line of work?

    In addition to tax overviews, you'll need to provide bank statements showing your trading income. If you use a separate account for business transactions, you'll need to be able to show these account statements to your lender.

    Director

    A lender may class you as employed, but normally only if your share in the company is small. The threshold varies from 5% upwards, but if it's 20% or more, most lenders will consider you as self-employed.

    The lender will usually require additional documentation to show that the business is solvent, and some will take into account your share of profits, in addition to your salary and any dividends.

    Contractor

    While contractors are typically company directors, many lenders acknowledge the fact that these arrangements are not the same as a corporate company director. This is reflected in their tailored affordability assessments.

    Some lenders will assess contractors using the same affordability assessment as any other company director. However, where this limits the borrowing capacity, there are other options available. The lender can undertake an affordability assessment as if you're employed and reference the gross contract daily rate as income. This will be subject to certain conditions, including history and continuity of contracts.

    Partner

    Lenders take a range of approaches to assess income and affordability for partners in firms. The options available to you will depend on a number of factors. These include the particular structure of pay, the percentage equity holding in your partnership and the size and nature of the partnership itself.

    There are tailored options available for partners of different sized firms, ranging from small local businesses to large multi-national firms. You'll need your compensation/drawings/reward statements for the latest year. Ideally, you should have details of the previous one to two years too. You will also need to show details of how you structure your remuneration within the partnership. Lenders may ask for a reference from a senior or managing partner in the business, depending on the circumstances.

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    Buy to let guides

    It's easy to navigate the mortgage process when you have a broker that really understands your situation and budget. We'll pull together all the information you need, spending time with you to get everything just perfect.

    We'll ask you questions like:
    • What are your plans for the future?
    • What type of job do you do?
    • What's your income and pay structure?
    • What are your family circumstances?

    We'll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence.

    That way, when you're ready to make a decision, you can do so knowing that you've got all the facts.

    Our mortgage advisers work closely with you to save you time and give you the very best chance of a successful application.

    During the application process, we'll:

    • Talk you through all your options with a free consultation
    • Recommend the right mortgage for your situation
    • Check how much you can afford to borrow
    • Help you to gather the information and documents you need for your application
    • Help you prepare your application for submission
    • Submit your application to the lender
    • Liaise with the lender, solicitors and estate agents.

    Once your mortgage has been offered, we'll support you all the way through to completion.

    We'll work hard to build a lasting relationship with you.

    So you'll always have someone you trust to help with any queries or requirements in the future.

    We want to make buying a property as simple as possible. The process may sound complex, but we take away all the stress and manage all the paperwork for you.

    Here's an overview of what happens:

    • First, we'll work with you to set your mortgage budget
    • You start the exciting bit ‐ viewing properties
    • We help you make and secure an offer on the place you want
    • You instruct a solicitor to handle the legal side of things
    • We finalise and submit your mortgage application to your chosen lender
    • They will survey the property to make sure the mortgage you want is reasonable
    • Once they are happy with the valuation, they'll make you an official mortgage offer
    • Your solicitor completes the legal process so you can exchange contracts and pay your deposit

    That's it! The home is now yours and it's time to collect the keys.

    Here's our step-by-step guide
    1. Before you start looking for a property, it's important to speak to one of our advisers. We'll use our expertise to help you work out how much you can borrow, set a budget, and decide what types of properties you will be able to get a mortgage for. It is important to speak to one of our advisers about an Agreement in Principle.
    2. Next, it's time to register with estate agents, getting a property valuation (if you're already a homeowner) and start viewings. You'll be able to really focus your search because you'll know exactly what your finances will cover.
    3. The property market moves fast, so once you've found a place you like, put in an offer as soon as you can. You'll likely then negotiate with the seller on price. When your offer is accepted, the estate agent may ask you for a deposit.
    4. Next, we'll help you find a property solicitor or licensed conveyancer. They'll handle all the legal paperwork for you, and it's a good idea to use a professional who knows the area you want to move to. Later in the process they'll also manage the exchange of contracts, deposit payment and money transfers from the lender to the seller. They're experts so you can relax knowing it's all in safe hands.
    5. There's now a further opportunity to fine-tune the details of your mortgage application. We do all this for you, and submit the application on your behalf.
    6. The lender will then survey the property to make sure that it's suitable for the mortgage. We recommend that you arrange a separate valuation too. This will give you peace of mind that the lender has made a fair assessment. There are two options available for this: a Homebuyer's Report or the more comprehensive Building Survey. If that sounds complicated, don't worry ‐ we can recommend independent surveyors you can trust.
    7. You'll get a mortgage offer once the lender is happy with everything. This will be sent to you and your solicitor so together you can check it over carefully before signing. Send it back to the lender and your mortgage is in place.
    8. It's time to exchange contracts with the seller. You'll pay a 10 per cent non-returnable deposit and now you're committed to buying. If you pull out after that, you won't get the deposit back and may have to pay extra costs. As soon as you exchange contracts, it's your responsibility to insure the property so you must have buildings insurance cover.
    9. It can take anything from a few days to a few weeks to complete the sale once you've exchanged contracts. In this time the remaining money (usually the 90 per cent not covered by the deposit) is transferred from your solicitor to the buyer's. On completion day, a few legal details are tied up, you get the keys, and the place is yours.

    Top tip: Be prepared

    Make sure you arrange insurance early in the process, because you can't exchange without it. We can help you with this and recommend providers.

    Getting a mortgage is important, but it doesn't have to be complicated. We'll handle every step for you, deal with all the paperwork and take away all the hassle. Here's a quick overview of how the process works and how we will help you:

    • We'll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you're looking for properties in the right price bracket.
    • We'll explain all the documentation we'll need to put together to support your application.
    • Once you've found a property, we'll find your ideal mortgage and manage the application process for you. We'll make it as simple as possible.
    • The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it's affordable for you. This might include asking for a reference from your employer or accountant
    • Once the lender's happy with all the checks, they'll make a formal mortgage offer. Then we'll help you complete the legal details and exchange contracts with the seller. We'll be there to talk you through every single piece of paper so you don't need to worry about a thing.

    Want more detail about the process?

    Here's our step-by-step guide
    1. It's best to speak to us before you start looking at properties. We can help you narrow down your search by focusing only on homes within your price range. This will save you time so you find your perfect place quicker.
    2. Here's what will happen when you first meet one of our advisers:
      1. We'll get to know you and how much you already understand about mortgages.
      2. We'll pull together all the information and documents a lender will need from you, ready for when you make an application.
      3. With your permission, we'll carry out a credit check with the lender to produce an Agreement in Principle (AIP).

    Top tip: You're in safe hands

    We know that making multiple credit checks can affect your credit rating, but don't worry, we are experts in this area. We'll only do what's necessary to make sure you get the best possible mortgage.

    1. Once you've got your AIP, you can start looking for properties with total confidence. You'll know exactly what your budget will cover and what types of home lenders will approve a mortgage for.

    Top tip: We're with you all the way

    Bear in mind that not all lenders approve mortgages on all types of property. Chat things through with us regularly during your property search and we'll make sure you stay on the right track.

    1. Found a great property and had an offer accepted? That means it's time for another meeting with us. Here's what we'll cover:
      1. We'll recap all the information we put together when we first met. Things move quickly now, so it's important we have all the right documents to hand.
      2. Then we'll go through the fine detail about your lender's policy to give you complete confidence about going forward. The great thing about working with Alexander Hall is that we've got excellent relationships with lenders and we can often speak directly to them to make sure everything is in order. This means no surprises and a much better chance of success.
      3. We'll submit the mortgage application on your behalf. As with everything we do, you don't need to worry about complex paperwork - we'll handle every detail for you.
  • We'll double and triple check your application to make sure that it's as strong as it can possibly be. Once we submit it to the lender, it goes to their underwriter. It's their job to make sure all the documents are in order. They'll also organise a mortgage survey to check the property is something they're happy to lend money for.
  • Top tip: We've got great connections

    1. Because we've built strong relationships in the industry, we can sometimes chat directly to your underwriter. This is a huge help for you because it means we can fine-tune the application to maximise your chances of success.
    2. You'll get a mortgage offer once the lender is happy with your application. The time it takes depends on the lender, but in general it tends to be quicker when you've got a broker like us on your side to work directly with them. We make sure they've got everything they need to make a decision.
    3. Some mortgage brokers finish working with you once you've got your offer. We do things differently at Alexander Hall. We'll stay in touch with you, your estate agent, solicitor and surveyors all the way through to completion. We'll keep in contact with you after that too, making sure that as and when your needs change, your deal remains the most suitable and competitive on the market.

    There are two main reasons for remortgaging:

    • To borrow additional funds
    • To get a better mortgage deal with a new lender, normally when your current deal expires

    Sometimes you might want to do a combination of the two.

    The benefits of shopping around

    It can be very tempting to simply renew with your current lender because it might seem like the easiest option. However you could be missing out on a really competitive deal, so it's always worth seeing what else is out there.

    We can help you with everything, whether you want to borrow more from your lender, or switch to a new one. We'll do all the analysis for you, comparing what your existing lender can offer with other deals on the market.

    We'll keep it really simple for you, streamline the whole process and offer straightforward advice on the benefits and risks of switching. For example, many lenders offer a free legal service with their remortgage deals, saving you money. However, if you need to complete quickly you may be better off selecting your own solicitor. We can help you with that.

    For great advice on every aspect of remortgaging and what it means for your particular situation, just ask.

    Top tip: Plan ahead

    Get in touch with us around six months before your existing mortgage deal expires, or well before you need additional funds. That gives us plenty of time to find the best deal for you.

    This means buying a property based on the specifications, but before it's built. It can take up to 12 months ‐ sometimes longer ‐ for an off‐plan property to be finished and ready for you to move in.

    When buying at this very early stage, it's a good idea to ask your developer when you'd be expected to complete. This is because you might want your mortgage lender to extend or renew their offer, sometimes more than once. You can end up paying multiple additional fees for re‐valuation.

    When you're buying off‐plan, it's a good idea to speak to your mortgage broker to find out what to ask your developer. We can advise you on everything you need.

    What about off‐plan mortgage offers?

    Many mortgage offers are valid for six months. Some lenders' timescales are longer, and others will offer allowances for extending mortgage offers, as long as your circumstances don't change.

    After a certain period, your lender may ask their surveyor to conduct a re‐inspection or re‐valuation of your property. This confirms that the property's expected value is still in line with the amount you need to borrow.

    We give you exclusive access to special new build services from some lenders. These can streamline the whole buying process and improve the likelihood of a successful purchase. They can be particularly helpful when your estimated completion date is far in the future. Give us a call to find out more. We're always happy to help.

    What about deposit requirement and loan to value (LTV)?

    Normally the value of a property can be assessed by looking at how much previous owners bought it for. This sort of information isn't available for a new build though, particularly if it's in an undeveloped area such as a new suburb.

    To increase their security, some lenders will limit the maximum loan to value (LTV) they offer for new build properties. In some cases, additional limitations will also apply if you're buying a flat. This means that to secure a mortgage in these cases, most lenders will need a larger deposit.

    We give you comprehensive access to lenders who will offer you a mortgage on a new build property and those who accept smaller deposits.

    Get in touch and we can talk you through it all.

    Arranging a buy-to-let (BTL) mortgage is similar to any other mortgage, and you can read details in our 'How does the mortgage process work' guide.

    There is one key difference though, based on the fact you plan to rent the property out.

    If you want a mortgage for a property you will live in, a lender will look at many factors, including your personal income and expenditure to help decide if they are happy to make you an offer.

    However, with BTL the lender will also take into account how much you will be able to rent the property out for.

    There are some important decisions you need to make when deciding to buy a property to let, but we can guide you smoothly through everything. It's different for everyone, so here's a really simple guide to work out what's best for you:

    Market, regulation and mortgages

    Being a landlord can be a great way to increase your income, or to acquire a property as a longer term investment. And in order to make it as profitable as possible, it's vital to get clear advice from a professional mortgage adviser. That's where we can help. We know the latest UK legislation and regulation inside out and can advise you on the detail of your mortgage requirements and put you in touch with tax specialists who can guide you on the most tax efficient way of purchasing a rental property.

    Being confident you can afford it

    Lenders traditionally calculate how much you can borrow by looking at the property's value and the expected rental income.

    It's standard practice to build in a buffer too. T his allows for hidden costs such as the property sometimes being empty, paying estate agency fees and spending on maintenance. It is calculated by using what's known as the interest coverage ratio (ICR). The ICR determines the amount the lender would like the rental income to be, to cover the mortgage and other costs.

    Recent regulation changes mean these calculations have got stricter. Lenders will also 'stress‒test' the mortgage, to make sure that an increase in interest rates won't cause any problems and you will still make a profit. The minimum stress test rate is either 5.5%, or 2% above the actual mortgage rate ‒ whichever is higher.

    Here's an example based on a £200,000 mortgage, using a typical ICR of 145% of mortgage interest and stress testing using an interest rate of 5.5%. The minimum rent required works out at £1,329 per month.

    Taking personal income into account

    This is known as income top‒slicing. Some lenders will factor in your personal income if the stress-tested monthly rental calculation explained above falls short. They will look at how much you earn compared to all you spend, including your residential mortgage, household expenditure and rental property costs.

    If you have extra income after covering all your outgoings, these lenders will combine it with expected rent to calculate the maximum you can borrow.

    New build normally means it either hasn't been built yet, or it's been completed but never sold or occupied (including show homes).

    Many mortgage lenders also count new builds as:

    • any conversion (such as a townhouse into flats)
    • a substantially renovated or extended property
    • homes built in the last couple of years

    New builds are a popular choice, particular for first-time buyers. Many housing associations offer you the option of shared ownership.

    Read More

    We can help you decide if a new build is the right choice. One benefit is that you can often tailor the specifications to your own taste, and you can move in immediately, no need for any improvements and no previous owners to worry about.

    There are some extra points to consider though, and we can help you think it all through:

    Holding deposit and exchange deadline

    Normally you need to give a holding deposit to the developer when buying a new build. Terms and conditions vary so we'll tell you exactly what to look for when you check through them. One key point is on refunds ‐ will you get the deposit back if you don't secure a mortgage or you change your mind?

    Alongside deposits, the developer will expect you to exchange contracts within a short timeframe, usually four weeks. The developer may let other people reserve a property if this timeframe is not met. Exchanging contracts will commit you and the developer to going ahead, so it is important you get the right mortgage quickly to avoid any last-minute worries.

    In basic terms, this is where one person agrees to buy a property off‐plan, but sells it on before completing. If we talk about Buyer A and Buyer B, this is how it works:

    • Buyer A exchanges contracts and puts down a deposit.
    • Before completing they agree to sell to Buyer B, typically at a higher price.
    • Buyer A “reassigns” the contract to Buyer B.
    • Buyer B now has the rights to complete the transaction.

    If you buy a property on a reassigned contract you could end up paying less that the latest market price. For example, the original buyer could pay £275k, and the property could go up in value to £350k before they decided to sell on the contract. To make a quick sale, they could offer it to you for £325k, so you both get a good deal.

    You also don't have the long completion date often associated with off‐plan purchases, but it does come with additional risks. Many lenders won't offer a mortgage based on contract reassignment, so it's important to seek detailed legal advice from your solicitor and discuss it with your mortgage adviser.

    We give you access to a number of lenders happy to consider contract reassignment purchases, with some limitations. If you want to take this route, feel free to give us a call and talk it through. It's important we know all the details of your purchase, so we can make sure you get the best advice for your particular circumstances.

    Can you buy from abroad through contract reassignment?

    New build developments are an attractive option if you're overseas and want investment property in the UK.

    We give you access to lenders who'll consider applications from non‐UK citizens and UK ex‐pats for both standard off‐plan purchases and contract reassignments.

    If you need to transfer funds to the UK, we recommend our currency exchange partner. Just call us for more details ‐ we're always happy to talk things through.

    There's a common myth that the self-employed find it hard to get a mortgage. While the options will vary, there are a number of competitive solutions. To learn more, it's essential to talk to a knowledgeable mortgage adviser.

    A number of lenders specialise in self-employed mortgages and have developed a range options that rely on different criteria.

    This can include:
    • Lending against your most recent year's income, rather than an average of the last two or three years
    • Lending against your company net profit - rather than just salary and dividends to reach a potentially more positive lending amount
    • Consideration of your daily rate if you're a contractor.

    Lenders will need to see specific documentation if you're self-employed. This will depend on your circumstances and we can advise on exactly what it means for you. It's best to discuss this with us as soon as possible to give you enough time to pull everything together.

    Sole trader, director, contractor or partner?

    The type of self-employed role you have affects how a lender assesses your suitability. Here's a brief overview of the main considerations:

    Sole trader

    Most lenders ask for a minimum of two years' of your full trading accounts and personal HMRC tax overviews. They'll typically also take the average of either two or three years' of your net profit before tax.

    Some lenders will consider an application if you have only one full trading year, though this depends on your circumstances. For example, have you have switched from employed to self-employed in the same line of work?

    In addition to tax overviews, you'll need to provide bank statements showing your trading income. If you use a separate account for business transactions, you'll need to be able to show these account statements to your lender.

    Director

    A lender may class you as employed, but normally only if your share in the company is small. The threshold varies from 5% upwards, but if it's 20% or more, most lenders will consider you as self-employed.

    The lender will usually require additional documentation to show that the business is solvent, and some will take into account your share of profits, in addition to your salary and any dividends.

    Contractor

    While contractors are typically company directors, many lenders acknowledge the fact that these arrangements are not the same as a corporate company director. This is reflected in their tailored affordability assessments.

    Some lenders will assess contractors using the same affordability assessment as any other company director. However, where this limits the borrowing capacity, there are other options available. The lender can undertake an affordability assessment as if you're employed and reference the gross contract daily rate as income. This will be subject to certain conditions, including history and continuity of contracts.

    Partner

    Lenders take a range of approaches to assess income and affordability for partners in firms. The options available to you will depend on a number of factors. These include the particular structure of pay, the percentage equity holding in your partnership and the size and nature of the partnership itself.

    There are tailored options available for partners of different sized firms, ranging from small local businesses to large multi-national firms. You'll need your compensation/drawings/reward statements for the latest year. Ideally, you should have details of the previous one to two years too. You will also need to show details of how you structure your remuneration within the partnership. Lenders may ask for a reference from a senior or managing partner in the business, depending on the circumstances.

    If you already own 4 or more properties, or have the ambition to build your portfolio, there are now additional regulatory requirements for lenders to factor in to their assessments. The regulation is not prescriptive but some examples include the lender's relationship with the borrower, how much experience the borrower has as a landlord and a view of the borrower's overall property portfolio.

    We have many clients who are classed as 'portfolio landlords' and have expertise in helping clients refinance and build their property portfolios, with strong relationships with all the key lenders in this market.

    Stamp Duty Land Tax (SDLT)

    SDLT is tax you pay when you buy a property. There is a standard calculation when you buy your main home, which goes up the more expensive it is. The same applies when buying further properties, but includes an additional 3% rise.

    You need to pay this supplement whether it's a second home, a new home if planning to rent out your current one (known as 'let to buy'), or a BTL purchase, even if you're living in rented accommodation yourself.

    You can't avoid the 3% by saying you own one property and having your spouse buy the second in their name. You and your spouse are considered to be one 'unit'.


    Stamp Duty Land Tax Examples
    Purchase price SDLT
    £250,000 £10,000
    £400,000 £22,000
    £550,000 £34,000

    Income tax

    You are liable to pay tax on income earned from rental property. This is income tax if it's a personal purchase, or corporation tax if you own it through a limited company. The amount depends on rental income, mortgage interest and other tax-deductible costs.

    Tax Relief Examples
    Period Tax relief @ highest tax rate Tax relief @ basic rate (20%)
    Up to March 2017 100% 0%
    April 2017 to March 2018 75% 25%
    April 2018 to March 2019 50% 50%
    April 2019 to March 2020 25% 75%
    From April 2020 0% 100%

    It's important to get professional tax advice on this before making any decisions about purchasing your BTL.

    Accountants

    Many landlords use an accountant. It's an additional cost, but they can often help you reduce the tax you need to pay, saving you money in the long run. Ideally you want someone who is a specialist in property tax and has experience advising landlords.

    Tax relief affects your decision on this. Between now and 2020, the amount of tax relief for BTL landlords will gradually change until the entire mortgage payment only attracts the basic rate (currently 20%). Here's a summary of how the transition is happening:

    Tax Relief Examples
    Period Tax relief @ highest tax rate Tax relief @ basic rate (20%)
    Up to March 2017 100% 0%
    April 2017 to March 2018 75% 25%
    April 2018 to March 2019 50% 50%
    April 2019 to March 2020 25% 75%
    From April 2020 0% 100%

    What does that mean for me?

    Buying a property in your own name

    These changes will not affect you if you are a basic rate tax payer and will remain one once all taxable income including your rent has been accounted for.

    You will pay more income tax under the new rules if you are a higher or additional rate tax payer, or will become one once your rental income is accounted for. This will mean either reduced profit, or potentially a net loss after tax.

    Buying a property via a limited company (special purpose vehicle or 'SPV')

    This option can be more tax efficient for higher and upper rate tax payers. However, remember that being a limited company comes with other responsibilities. You will be a company director and need to abide by the Companies Act 2006, there are likely to be additional admin time and costs involved, and professional fees may be higher.

    What does this mean for my mortgage?

    At the moment a few lenders will consider offering a mortgage on a limited company basis, and their interest rates and fees will typically be higher than what they offer to personal landlords.

    Whether it ultimately works out cost effective for you depends on your income, mortgage rates, and fees, along with capital gains tax, inheritance tax and income from dividends.

    It's up to you to follow legislation, including regular inspections and maintaining tenants' rights. You must handle repairs and maintenance, rent collection, tax payments and other legal requirements correctly. Items to keep up‒to‒date include:

    • Annual gas safety inspection
    • Energy Performance Certificate
    • Property and landlord insurance
    • Liability insurance

    You can either manage everything yourself or hire professionals to take care of it for you. For example, you can avoid all the hassle of day‒to‒day management by taking on a fully managed service from your letting agent. Our sister company Foxtons can do exactly that for you.

    guides logo

    Remortgage guides

    It's easy to navigate the mortgage process when you have a broker that really understands your situation and budget. We'll pull together all the information you need, spending time with you to get everything just perfect.

    We'll ask you questions like:
    • What are your plans for the future?
    • What type of job do you do?
    • What's your income and pay structure?
    • What are your family circumstances?

    We'll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence.

    That way, when you're ready to make a decision, you can do so knowing that you've got all the facts.

    Our mortgage advisers work closely with you to save you time and give you the very best chance of a successful application.

    During the application process, we'll:

    • Talk you through all your options with a free consultation
    • Recommend the right mortgage for your situation
    • Check how much you can afford to borrow
    • Help you to gather the information and documents you need for your application
    • Help you prepare your application for submission
    • Submit your application to the lender
    • Liaise with the lender, solicitors and estate agents.

    Once your mortgage has been offered, we'll support you all the way through to completion.

    We'll work hard to build a lasting relationship with you.

    So you'll always have someone you trust to help with any queries or requirements in the future.

    There are two main reasons for remortgaging:

    • To borrow additional funds
    • To get a better mortgage deal with a new lender, normally when your current deal expires

    Sometimes you might want to do a combination of the two.

    The benefits of shopping around

    It can be very tempting to simply renew with your current lender because it might seem like the easiest option. However you could be missing out on a really competitive deal, so it's always worth seeing what else is out there.

    We can help you with everything, whether you want to borrow more from your lender, or switch to a new one. We'll do all the analysis for you, comparing what your existing lender can offer with other deals on the market.

    We'll keep it really simple for you, streamline the whole process and offer straightforward advice on the benefits and risks of switching. For example, many lenders offer a free legal service with their remortgage deals, saving you money. However, if you need to complete quickly you may be better off selecting your own solicitor. We can help you with that.

    For great advice on every aspect of remortgaging and what it means for your particular situation, just ask.

    Top tip: Plan ahead

    Get in touch with us around six months before your existing mortgage deal expires, or well before you need additional funds. That gives us plenty of time to find the best deal for you.

    Getting a mortgage is important, but it doesn't have to be complicated. We'll handle every step for you, deal with all the paperwork and take away all the hassle. Here's a quick overview of how the process works and how we will help you:

    • We'll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you're looking for properties in the right price bracket.
    • We'll explain all the documentation we'll need to put together to support your application.
    • Once you've found a property, we'll find your ideal mortgage and manage the application process for you. We'll make it as simple as possible.
    • The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it's affordable for you. This might include asking for a reference from your employer or accountant
    • Once the lender's happy with all the checks, they'll make a formal mortgage offer. Then we'll help you complete the legal details and exchange contracts with the seller. We'll be there to talk you through every single piece of paper so you don't need to worry about a thing.

    Want more detail about the process?

    Here's our step-by-step guide
    1. It's best to speak to us before you start looking at properties. We can help you narrow down your search by focusing only on homes within your price range. This will save you time so you find your perfect place quicker.
    2. Here's what will happen when you first meet one of our advisers:
      1. We'll get to know you and how much you already understand about mortgages.
      2. We'll pull together all the information and documents a lender will need from you, ready for when you make an application.
      3. With your permission, we'll carry out a credit check with the lender to produce an Agreement in Principle (AIP).

    Top tip: You're in safe hands

    We know that making multiple credit checks can affect your credit rating, but don't worry, we are experts in this area. We'll only do what's necessary to make sure you get the best possible mortgage.

    1. Once you've got your AIP, you can start looking for properties with total confidence. You'll know exactly what your budget will cover and what types of home lenders will approve a mortgage for.

    Top tip: We're with you all the way

    Bear in mind that not all lenders approve mortgages on all types of property. Chat things through with us regularly during your property search and we'll make sure you stay on the right track.

    1. Found a great property and had an offer accepted? That means it's time for another meeting with us. Here's what we'll cover:
      1. We'll recap all the information we put together when we first met. Things move quickly now, so it's important we have all the right documents to hand.
      2. Then we'll go through the fine detail about your lender's policy to give you complete confidence about going forward. The great thing about working with Alexander Hall is that we've got excellent relationships with lenders and we can often speak directly to them to make sure everything is in order. This means no surprises and a much better chance of success.
      3. We'll submit the mortgage application on your behalf. As with everything we do, you don't need to worry about complex paperwork - we'll handle every detail for you.
  • We'll double and triple check your application to make sure that it's as strong as it can possibly be. Once we submit it to the lender, it goes to their underwriter. It's their job to make sure all the documents are in order. They'll also organise a mortgage survey to check the property is something they're happy to lend money for.
  • Top tip: We've got great connections

    1. Because we've built strong relationships in the industry, we can sometimes chat directly to your underwriter. This is a huge help for you because it means we can fine-tune the application to maximise your chances of success.
    2. You'll get a mortgage offer once the lender is happy with your application. The time it takes depends on the lender, but in general it tends to be quicker when you've got a broker like us on your side to work directly with them. We make sure they've got everything they need to make a decision.
    3. Some mortgage brokers finish working with you once you've got your offer. We do things differently at Alexander Hall. We'll stay in touch with you, your estate agent, solicitor and surveyors all the way through to completion. We'll keep in contact with you after that too, making sure that as and when your needs change, your deal remains the most suitable and competitive on the market.

    Arranging a buy-to-let (BTL) mortgage is similar to any other mortgage, and you can read details in our 'How does the mortgage process work' guide.

    There is one key difference though, based on the fact you plan to rent the property out.

    If you want a mortgage for a property you will live in, a lender will look at many factors, including your personal income and expenditure to help decide if they are happy to make you an offer.

    However, with BTL the lender will also take into account how much you will be able to rent the property out for.

    There's a common myth that the self-employed find it hard to get a mortgage. While the options will vary, there are a number of competitive solutions. To learn more, it's essential to talk to a knowledgeable mortgage adviser.

    A number of lenders specialise in self-employed mortgages and have developed a range options that rely on different criteria.

    This can include:
    • Lending against your most recent year's income, rather than an average of the last two or three years
    • Lending against your company net profit - rather than just salary and dividends to reach a potentially more positive lending amount
    • Consideration of your daily rate if you're a contractor.

    Lenders will need to see specific documentation if you're self-employed. This will depend on your circumstances and we can advise on exactly what it means for you. It's best to discuss this with us as soon as possible to give you enough time to pull everything together.

    Sole trader, director, contractor or partner?

    The type of self-employed role you have affects how a lender assesses your suitability. Here's a brief overview of the main considerations:

    Sole trader

    Most lenders ask for a minimum of two years' of your full trading accounts and personal HMRC tax overviews. They'll typically also take the average of either two or three years' of your net profit before tax.

    Some lenders will consider an application if you have only one full trading year, though this depends on your circumstances. For example, have you have switched from employed to self-employed in the same line of work?

    In addition to tax overviews, you'll need to provide bank statements showing your trading income. If you use a separate account for business transactions, you'll need to be able to show these account statements to your lender.

    Director

    A lender may class you as employed, but normally only if your share in the company is small. The threshold varies from 5% upwards, but if it's 20% or more, most lenders will consider you as self-employed.

    The lender will usually require additional documentation to show that the business is solvent, and some will take into account your share of profits, in addition to your salary and any dividends.

    Contractor

    While contractors are typically company directors, many lenders acknowledge the fact that these arrangements are not the same as a corporate company director. This is reflected in their tailored affordability assessments.

    Some lenders will assess contractors using the same affordability assessment as any other company director. However, where this limits the borrowing capacity, there are other options available. The lender can undertake an affordability assessment as if you're employed and reference the gross contract daily rate as income. This will be subject to certain conditions, including history and continuity of contracts.

    Partner

    Lenders take a range of approaches to assess income and affordability for partners in firms. The options available to you will depend on a number of factors. These include the particular structure of pay, the percentage equity holding in your partnership and the size and nature of the partnership itself.

    There are tailored options available for partners of different sized firms, ranging from small local businesses to large multi-national firms. You'll need your compensation/drawings/reward statements for the latest year. Ideally, you should have details of the previous one to two years too. You will also need to show details of how you structure your remuneration within the partnership. Lenders may ask for a reference from a senior or managing partner in the business, depending on the circumstances.

    If you already own 4 or more properties, or have the ambition to build your portfolio, there are now additional regulatory requirements for lenders to factor in to their assessments. The regulation is not prescriptive but some examples include the lender's relationship with the borrower, how much experience the borrower has as a landlord and a view of the borrower's overall property portfolio.

    We have many clients who are classed as 'portfolio landlords' and have expertise in helping clients refinance and build their property portfolios, with strong relationships with all the key lenders in this market.

    Stamp Duty Land Tax (SDLT)

    SDLT is tax you pay when you buy a property. There is a standard calculation when you buy your main home, which goes up the more expensive it is. The same applies when buying further properties, but includes an additional 3% rise.

    You need to pay this supplement whether it's a second home, a new home if planning to rent out your current one (known as 'let to buy'), or a BTL purchase, even if you're living in rented accommodation yourself.

    You can't avoid the 3% by saying you own one property and having your spouse buy the second in their name. You and your spouse are considered to be one 'unit'.


    Stamp Duty Land Tax Examples
    Purchase price SDLT
    £250,000 £10,000
    £400,000 £22,000
    £550,000 £34,000

    Income tax

    You are liable to pay tax on income earned from rental property. This is income tax if it's a personal purchase, or corporation tax if you own it through a limited company. The amount depends on rental income, mortgage interest and other tax-deductible costs.

    Tax Relief Examples
    Period Tax relief @ highest tax rate Tax relief @ basic rate (20%)
    Up to March 2017 100% 0%
    April 2017 to March 2018 75% 25%
    April 2018 to March 2019 50% 50%
    April 2019 to March 2020 25% 75%
    From April 2020 0% 100%

    It's important to get professional tax advice on this before making any decisions about purchasing your BTL.

    Accountants

    Many landlords use an accountant. It's an additional cost, but they can often help you reduce the tax you need to pay, saving you money in the long run. Ideally you want someone who is a specialist in property tax and has experience advising landlords.

    It's up to you to follow legislation, including regular inspections and maintaining tenants' rights. You must handle repairs and maintenance, rent collection, tax payments and other legal requirements correctly. Items to keep up‒to‒date include:

    • Annual gas safety inspection
    • Energy Performance Certificate
    • Property and landlord insurance
    • Liability insurance

    You can either manage everything yourself or hire professionals to take care of it for you. For example, you can avoid all the hassle of day‒to‒day management by taking on a fully managed service from your letting agent. Our sister company Foxtons can do exactly that for you.

    guides logo

    Moving home guides

    It's easy to navigate the mortgage process when you have a broker that really understands your situation and budget. We'll pull together all the information you need, spending time with you to get everything just perfect.

    We'll ask you questions like:
    • What are your plans for the future?
    • What type of job do you do?
    • What's your income and pay structure?
    • What are your family circumstances?

    We'll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence.

    That way, when you're ready to make a decision, you can do so knowing that you've got all the facts.

    Our mortgage advisers work closely with you to save you time and give you the very best chance of a successful application.

    During the application process, we'll:

    • Talk you through all your options with a free consultation
    • Recommend the right mortgage for your situation
    • Check how much you can afford to borrow
    • Help you to gather the information and documents you need for your application
    • Help you prepare your application for submission
    • Submit your application to the lender
    • Liaise with the lender, solicitors and estate agents.

    Once your mortgage has been offered, we'll support you all the way through to completion.

    We'll work hard to build a lasting relationship with you.

    So you'll always have someone you trust to help with any queries or requirements in the future.

    We want to make buying a property as simple as possible. The process may sound complex, but we take away all the stress and manage all the paperwork for you.

    Here's an overview of what happens:

    • First, we'll work with you to set your mortgage budget
    • You start the exciting bit ‐ viewing properties
    • We help you make and secure an offer on the place you want
    • You instruct a solicitor to handle the legal side of things
    • We finalise and submit your mortgage application to your chosen lender
    • They will survey the property to make sure the mortgage you want is reasonable
    • Once they are happy with the valuation, they'll make you an official mortgage offer
    • Your solicitor completes the legal process so you can exchange contracts and pay your deposit

    That's it! The home is now yours and it's time to collect the keys.

    Here's our step-by-step guide
    1. Before you start looking for a property, it's important to speak to one of our advisers. We'll use our expertise to help you work out how much you can borrow, set a budget, and decide what types of properties you will be able to get a mortgage for. It is important to speak to one of our advisers about an Agreement in Principle.
    2. Next, it's time to register with estate agents, getting a property valuation (if you're already a homeowner) and start viewings. You'll be able to really focus your search because you'll know exactly what your finances will cover.
    3. The property market moves fast, so once you've found a place you like, put in an offer as soon as you can. You'll likely then negotiate with the seller on price. When your offer is accepted, the estate agent may ask you for a deposit.
    4. Next, we'll help you find a property solicitor or licensed conveyancer. They'll handle all the legal paperwork for you, and it's a good idea to use a professional who knows the area you want to move to. Later in the process they'll also manage the exchange of contracts, deposit payment and money transfers from the lender to the seller. They're experts so you can relax knowing it's all in safe hands.
    5. There's now a further opportunity to fine-tune the details of your mortgage application. We do all this for you, and submit the application on your behalf.
    6. The lender will then survey the property to make sure that it's suitable for the mortgage. We recommend that you arrange a separate valuation too. This will give you peace of mind that the lender has made a fair assessment. There are two options available for this: a Homebuyer's Report or the more comprehensive Building Survey. If that sounds complicated, don't worry ‐ we can recommend independent surveyors you can trust.
    7. You'll get a mortgage offer once the lender is happy with everything. This will be sent to you and your solicitor so together you can check it over carefully before signing. Send it back to the lender and your mortgage is in place.
    8. It's time to exchange contracts with the seller. You'll pay a 10 per cent non-returnable deposit and now you're committed to buying. If you pull out after that, you won't get the deposit back and may have to pay extra costs. As soon as you exchange contracts, it's your responsibility to insure the property so you must have buildings insurance cover.
    9. It can take anything from a few days to a few weeks to complete the sale once you've exchanged contracts. In this time the remaining money (usually the 90 per cent not covered by the deposit) is transferred from your solicitor to the buyer's. On completion day, a few legal details are tied up, you get the keys, and the place is yours.

    Top tip: Be prepared

    Make sure you arrange insurance early in the process, because you can't exchange without it. We can help you with this and recommend providers.

    Getting a mortgage is important, but it doesn't have to be complicated. We'll handle every step for you, deal with all the paperwork and take away all the hassle. Here's a quick overview of how the process works and how we will help you:

    • We'll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you're looking for properties in the right price bracket.
    • We'll explain all the documentation we'll need to put together to support your application.
    • Once you've found a property, we'll find your ideal mortgage and manage the application process for you. We'll make it as simple as possible.
    • The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it's affordable for you. This might include asking for a reference from your employer or accountant
    • Once the lender's happy with all the checks, they'll make a formal mortgage offer. Then we'll help you complete the legal details and exchange contracts with the seller. We'll be there to talk you through every single piece of paper so you don't need to worry about a thing.

    Want more detail about the process?

    Here's our step-by-step guide
    1. It's best to speak to us before you start looking at properties. We can help you narrow down your search by focusing only on homes within your price range. This will save you time so you find your perfect place quicker.
    2. Here's what will happen when you first meet one of our advisers:
      1. We'll get to know you and how much you already understand about mortgages.
      2. We'll pull together all the information and documents a lender will need from you, ready for when you make an application.
      3. With your permission, we'll carry out a credit check with the lender to produce an Agreement in Principle (AIP).

    Top tip: You're in safe hands

    We know that making multiple credit checks can affect your credit rating, but don't worry, we are experts in this area. We'll only do what's necessary to make sure you get the best possible mortgage.

    1. Once you've got your AIP, you can start looking for properties with total confidence. You'll know exactly what your budget will cover and what types of home lenders will approve a mortgage for.

    Top tip: We're with you all the way

    Bear in mind that not all lenders approve mortgages on all types of property. Chat things through with us regularly during your property search and we'll make sure you stay on the right track.

    1. Found a great property and had an offer accepted? That means it's time for another meeting with us. Here's what we'll cover:
      1. We'll recap all the information we put together when we first met. Things move quickly now, so it's important we have all the right documents to hand.
      2. Then we'll go through the fine detail about your lender's policy to give you complete confidence about going forward. The great thing about working with Alexander Hall is that we've got excellent relationships with lenders and we can often speak directly to them to make sure everything is in order. This means no surprises and a much better chance of success.
      3. We'll submit the mortgage application on your behalf. As with everything we do, you don't need to worry about complex paperwork - we'll handle every detail for you.
  • We'll double and triple check your application to make sure that it's as strong as it can possibly be. Once we submit it to the lender, it goes to their underwriter. It's their job to make sure all the documents are in order. They'll also organise a mortgage survey to check the property is something they're happy to lend money for.
  • Top tip: We've got great connections

    1. Because we've built strong relationships in the industry, we can sometimes chat directly to your underwriter. This is a huge help for you because it means we can fine-tune the application to maximise your chances of success.
    2. You'll get a mortgage offer once the lender is happy with your application. The time it takes depends on the lender, but in general it tends to be quicker when you've got a broker like us on your side to work directly with them. We make sure they've got everything they need to make a decision.
    3. Some mortgage brokers finish working with you once you've got your offer. We do things differently at Alexander Hall. We'll stay in touch with you, your estate agent, solicitor and surveyors all the way through to completion. We'll keep in contact with you after that too, making sure that as and when your needs change, your deal remains the most suitable and competitive on the market.

    Moving from a home you already own isn’t much different from buying your first property. There are just a few extra things to think about, and we can help you with it all.

    You might want to keep it really simple, selling where you live and buying your next place. Or you might prefer to keep your existing home and rent it out, which is known as ‘ let to buy’. This could be a one-off investment, or an exciting step towards having a property portfolio. Whatever your plan, we can give you easy-to-understand, hassle-free advice about your options.

    Read More

    Decide early

    The sooner you know what you want to do the better. If you plan to sell your home, we recommend getting it on the market as soon as possible. If you decide to rent your existing home, gather rental estimates from letting agents so you know how much tenants will be willing to pay. Normally you also have to convert your mortgage to a ‘ buy to let’.

    We’ll carefully walk you through your mortgage options, keeping things clear and simple. You may want to ‘ port’ your existing deal over to your new mortgage. We’ll advise if that’s the best option, or if you’d benefit more from taking a new deal.

    You’ll get all the pros and cons so you have the complete picture.

    Finding the right solicitor

    Once you’d decided, we can help you find the ideal solicitor to make sure all legal aspects go smoothly. You can choose any solicitor as long as they are registered on the lender’s legal panel. We have great recommendations if you need them.

    Choosing a lender

    Different lenders are suitable for different situations, so when you’ve found the property you want to buy, we’ll give you advice on who to approach for the mortgage.

    It will partly depend on whether you are selling or letting your existing home. We will also look at how you prioritise landing a competitively priced deal and the need to move quickly. With our support you’ll find a lender with just the right balance for you.

    New build normally means it either hasn't been built yet, or it's been completed but never sold or occupied (including show homes).

    Many mortgage lenders also count new builds as:

    • any conversion (such as a townhouse into flats)
    • a substantially renovated or extended property
    • homes built in the last couple of years

    New builds are a popular choice, particular for first-time buyers. Many housing associations offer you the option of shared ownership.

    Read More

    We can help you decide if a new build is the right choice. One benefit is that you can often tailor the specifications to your own taste, and you can move in immediately, no need for any improvements and no previous owners to worry about.

    There are some extra points to consider though, and we can help you think it all through:

    Holding deposit and exchange deadline

    Normally you need to give a holding deposit to the developer when buying a new build. Terms and conditions vary so we'll tell you exactly what to look for when you check through them. One key point is on refunds ‐ will you get the deposit back if you don't secure a mortgage or you change your mind?

    Alongside deposits, the developer will expect you to exchange contracts within a short timeframe, usually four weeks. The developer may let other people reserve a property if this timeframe is not met. Exchanging contracts will commit you and the developer to going ahead, so it is important you get the right mortgage quickly to avoid any last-minute worries.

    This means buying a property based on the specifications, but before it's built. It can take up to 12 months ‐ sometimes longer ‐ for an off‐plan property to be finished and ready for you to move in.

    When buying at this very early stage, it's a good idea to ask your developer when you'd be expected to complete. This is because you might want your mortgage lender to extend or renew their offer, sometimes more than once. You can end up paying multiple additional fees for re‐valuation.

    When you're buying off‐plan, it's a good idea to speak to your mortgage broker to find out what to ask your developer. We can advise you on everything you need.

    What about off‐plan mortgage offers?

    Many mortgage offers are valid for six months. Some lenders' timescales are longer, and others will offer allowances for extending mortgage offers, as long as your circumstances don't change.

    After a certain period, your lender may ask their surveyor to conduct a re‐inspection or re‐valuation of your property. This confirms that the property's expected value is still in line with the amount you need to borrow.

    We give you exclusive access to special new build services from some lenders. These can streamline the whole buying process and improve the likelihood of a successful purchase. They can be particularly helpful when your estimated completion date is far in the future. Give us a call to find out more. We're always happy to help.

    What about deposit requirement and loan to value (LTV)?

    Normally the value of a property can be assessed by looking at how much previous owners bought it for. This sort of information isn't available for a new build though, particularly if it's in an undeveloped area such as a new suburb.

    To increase their security, some lenders will limit the maximum loan to value (LTV) they offer for new build properties. In some cases, additional limitations will also apply if you're buying a flat. This means that to secure a mortgage in these cases, most lenders will need a larger deposit.

    We give you comprehensive access to lenders who will offer you a mortgage on a new build property and those who accept smaller deposits.

    Get in touch and we can talk you through it all.

    In basic terms, this is where one person agrees to buy a property off‐plan, but sells it on before completing. If we talk about Buyer A and Buyer B, this is how it works:

    • Buyer A exchanges contracts and puts down a deposit.
    • Before completing they agree to sell to Buyer B, typically at a higher price.
    • Buyer A “reassigns” the contract to Buyer B.
    • Buyer B now has the rights to complete the transaction.

    If you buy a property on a reassigned contract you could end up paying less that the latest market price. For example, the original buyer could pay £275k, and the property could go up in value to £350k before they decided to sell on the contract. To make a quick sale, they could offer it to you for £325k, so you both get a good deal.

    You also don't have the long completion date often associated with off‐plan purchases, but it does come with additional risks. Many lenders won't offer a mortgage based on contract reassignment, so it's important to seek detailed legal advice from your solicitor and discuss it with your mortgage adviser.

    We give you access to a number of lenders happy to consider contract reassignment purchases, with some limitations. If you want to take this route, feel free to give us a call and talk it through. It's important we know all the details of your purchase, so we can make sure you get the best advice for your particular circumstances.

    Can you buy from abroad through contract reassignment?

    New build developments are an attractive option if you're overseas and want investment property in the UK.

    We give you access to lenders who'll consider applications from non‐UK citizens and UK ex‐pats for both standard off‐plan purchases and contract reassignments.

    If you need to transfer funds to the UK, we recommend our currency exchange partner. Just call us for more details ‐ we're always happy to talk things through.

    If you're a first-time buyer, a Shared Ownership scheme is another useful option. This is how it works:

    • You buy a share of between 25% and 75% of your new home.
    • You pay a subsidised rent on the remaining share to the housing association or housing authority, along with a monthly service charge.

    The share you can purchase will depend on the vendor, what you can afford and the eligibility criteria.

    Who is eligible?

    This can vary slightly between different housing associations. However, shared ownership is normally only available if you're a first-time buyer. Some housing associations also consider non-first time buyers in certain circumstances. This could be if you're buying your first property alone after a divorce or family breakdown.

    Other exceptions will depend upon the housing association's individual terms. Many housing associations require buyers to be UK/EU/EEA citizens while others will consider non-UK citizens, subject to visa status.

    Staircasing

    This means buying additional shares in a Shared Ownership property. You can do this at any time, normally at a minimum of a further 10% share each time. The housing association instructs an RICS surveyor to conduct the valuation and normally as you are the applicant, you pay the valuation fee. The current market value will dictate the price you pay.

    Stamp Duty Land Tax (SDLT)

    When you buy a share in a property, you're liable to pay Stamp Duty Land Tax (SDLT).

    You can pay it in two ways:

    A one-off payment.
    This is based on the total market value of the property at the time of the original purchase. This is known as making a ‘market value election’.
    In stages.
    You may make your first payment on the price you pay for the lease, but only if it's above the SDLT threshold. Once you increase your share of the property to 80%, you then must pay on both the transaction that took you over that percentage, and any further transactions.

    If you're purchasing a Shared Ownership property, ask your solicitor for advice on which SDLT payment option is best for you.

    We give you access to a number of lenders who'll consider a shared ownership application. Currently, the minimum deposit required is just 5% of the property's full market value.

    See our stamp duty calculator

    What government schemes are available to help me buy my home?

    Over the years, the government has introduced a number of different schemes to help. They are designed to make it easier to own your own home, at a time when property prices are rising faster than many people's incomes.

    The two main schemes currently available are Shared Ownership, which involves a housing association or housing authority, and the government's scheme.

    There's a common myth that the self-employed find it hard to get a mortgage. While the options will vary, there are a number of competitive solutions. To learn more, it's essential to talk to a knowledgeable mortgage adviser.

    A number of lenders specialise in self-employed mortgages and have developed a range options that rely on different criteria.

    This can include:
    • Lending against your most recent year's income, rather than an average of the last two or three years
    • Lending against your company net profit - rather than just salary and dividends to reach a potentially more positive lending amount
    • Consideration of your daily rate if you're a contractor.

    Lenders will need to see specific documentation if you're self-employed. This will depend on your circumstances and we can advise on exactly what it means for you. It's best to discuss this with us as soon as possible to give you enough time to pull everything together.

    Sole trader, director, contractor or partner?

    The type of self-employed role you have affects how a lender assesses your suitability. Here's a brief overview of the main considerations:

    Sole trader

    Most lenders ask for a minimum of two years' of your full trading accounts and personal HMRC tax overviews. They'll typically also take the average of either two or three years' of your net profit before tax.

    Some lenders will consider an application if you have only one full trading year, though this depends on your circumstances. For example, have you have switched from employed to self-employed in the same line of work?

    In addition to tax overviews, you'll need to provide bank statements showing your trading income. If you use a separate account for business transactions, you'll need to be able to show these account statements to your lender.

    Director

    A lender may class you as employed, but normally only if your share in the company is small. The threshold varies from 5% upwards, but if it's 20% or more, most lenders will consider you as self-employed.

    The lender will usually require additional documentation to show that the business is solvent, and some will take into account your share of profits, in addition to your salary and any dividends.

    Contractor

    While contractors are typically company directors, many lenders acknowledge the fact that these arrangements are not the same as a corporate company director. This is reflected in their tailored affordability assessments.

    Some lenders will assess contractors using the same affordability assessment as any other company director. However, where this limits the borrowing capacity, there are other options available. The lender can undertake an affordability assessment as if you're employed and reference the gross contract daily rate as income. This will be subject to certain conditions, including history and continuity of contracts.

    Partner

    Lenders take a range of approaches to assess income and affordability for partners in firms. The options available to you will depend on a number of factors. These include the particular structure of pay, the percentage equity holding in your partnership and the size and nature of the partnership itself.

    There are tailored options available for partners of different sized firms, ranging from small local businesses to large multi-national firms. You'll need your compensation/drawings/reward statements for the latest year. Ideally, you should have details of the previous one to two years too. You will also need to show details of how you structure your remuneration within the partnership. Lenders may ask for a reference from a senior or managing partner in the business, depending on the circumstances.

    guides logo

    New build guides

    It's easy to navigate the mortgage process when you have a broker that really understands your situation and budget. We'll pull together all the information you need, spending time with you to get everything just perfect.

    We'll ask you questions like:
    • What are your plans for the future?
    • What type of job do you do?
    • What's your income and pay structure?
    • What are your family circumstances?

    We'll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence.

    That way, when you're ready to make a decision, you can do so knowing that you've got all the facts.

    Our mortgage advisers work closely with you to save you time and give you the very best chance of a successful application.

    During the application process, we'll:

    • Talk you through all your options with a free consultation
    • Recommend the right mortgage for your situation
    • Check how much you can afford to borrow
    • Help you to gather the information and documents you need for your application
    • Help you prepare your application for submission
    • Submit your application to the lender
    • Liaise with the lender, solicitors and estate agents.

    Once your mortgage has been offered, we'll support you all the way through to completion.

    We'll work hard to build a lasting relationship with you.

    So you'll always have someone you trust to help with any queries or requirements in the future.

    We want to make buying a property as simple as possible. The process may sound complex, but we take away all the stress and manage all the paperwork for you.

    Here's an overview of what happens:

    • First, we'll work with you to set your mortgage budget
    • You start the exciting bit ‐ viewing properties
    • We help you make and secure an offer on the place you want
    • You instruct a solicitor to handle the legal side of things
    • We finalise and submit your mortgage application to your chosen lender
    • They will survey the property to make sure the mortgage you want is reasonable
    • Once they are happy with the valuation, they'll make you an official mortgage offer
    • Your solicitor completes the legal process so you can exchange contracts and pay your deposit

    That's it! The home is now yours and it's time to collect the keys.

    Here's our step-by-step guide
    1. Before you start looking for a property, it's important to speak to one of our advisers. We'll use our expertise to help you work out how much you can borrow, set a budget, and decide what types of properties you will be able to get a mortgage for. It is important to speak to one of our advisers about an Agreement in Principle.
    2. Next, it's time to register with estate agents, getting a property valuation (if you're already a homeowner) and start viewings. You'll be able to really focus your search because you'll know exactly what your finances will cover.
    3. The property market moves fast, so once you've found a place you like, put in an offer as soon as you can. You'll likely then negotiate with the seller on price. When your offer is accepted, the estate agent may ask you for a deposit.
    4. Next, we'll help you find a property solicitor or licensed conveyancer. They'll handle all the legal paperwork for you, and it's a good idea to use a professional who knows the area you want to move to. Later in the process they'll also manage the exchange of contracts, deposit payment and money transfers from the lender to the seller. They're experts so you can relax knowing it's all in safe hands.
    5. There's now a further opportunity to fine-tune the details of your mortgage application. We do all this for you, and submit the application on your behalf.
    6. The lender will then survey the property to make sure that it's suitable for the mortgage. We recommend that you arrange a separate valuation too. This will give you peace of mind that the lender has made a fair assessment. There are two options available for this: a Homebuyer's Report or the more comprehensive Building Survey. If that sounds complicated, don't worry ‐ we can recommend independent surveyors you can trust.
    7. You'll get a mortgage offer once the lender is happy with everything. This will be sent to you and your solicitor so together you can check it over carefully before signing. Send it back to the lender and your mortgage is in place.
    8. It's time to exchange contracts with the seller. You'll pay a 10 per cent non-returnable deposit and now you're committed to buying. If you pull out after that, you won't get the deposit back and may have to pay extra costs. As soon as you exchange contracts, it's your responsibility to insure the property so you must have buildings insurance cover.
    9. It can take anything from a few days to a few weeks to complete the sale once you've exchanged contracts. In this time the remaining money (usually the 90 per cent not covered by the deposit) is transferred from your solicitor to the buyer's. On completion day, a few legal details are tied up, you get the keys, and the place is yours.

    Top tip: Be prepared

    Make sure you arrange insurance early in the process, because you can't exchange without it. We can help you with this and recommend providers.

    Getting a mortgage is important, but it doesn't have to be complicated. We'll handle every step for you, deal with all the paperwork and take away all the hassle. Here's a quick overview of how the process works and how we will help you:

    • We'll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you're looking for properties in the right price bracket.
    • We'll explain all the documentation we'll need to put together to support your application.
    • Once you've found a property, we'll find your ideal mortgage and manage the application process for you. We'll make it as simple as possible.
    • The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it's affordable for you. This might include asking for a reference from your employer or accountant
    • Once the lender's happy with all the checks, they'll make a formal mortgage offer. Then we'll help you complete the legal details and exchange contracts with the seller. We'll be there to talk you through every single piece of paper so you don't need to worry about a thing.

    Want more detail about the process?

    Here's our step-by-step guide
    1. It's best to speak to us before you start looking at properties. We can help you narrow down your search by focusing only on homes within your price range. This will save you time so you find your perfect place quicker.
    2. Here's what will happen when you first meet one of our advisers:
      1. We'll get to know you and how much you already understand about mortgages.
      2. We'll pull together all the information and documents a lender will need from you, ready for when you make an application.
      3. With your permission, we'll carry out a credit check with the lender to produce an Agreement in Principle (AIP).

    Top tip: You're in safe hands

    We know that making multiple credit checks can affect your credit rating, but don't worry, we are experts in this area. We'll only do what's necessary to make sure you get the best possible mortgage.

    1. Once you've got your AIP, you can start looking for properties with total confidence. You'll know exactly what your budget will cover and what types of home lenders will approve a mortgage for.

    Top tip: We're with you all the way

    Bear in mind that not all lenders approve mortgages on all types of property. Chat things through with us regularly during your property search and we'll make sure you stay on the right track.

    1. Found a great property and had an offer accepted? That means it's time for another meeting with us. Here's what we'll cover:
      1. We'll recap all the information we put together when we first met. Things move quickly now, so it's important we have all the right documents to hand.
      2. Then we'll go through the fine detail about your lender's policy to give you complete confidence about going forward. The great thing about working with Alexander Hall is that we've got excellent relationships with lenders and we can often speak directly to them to make sure everything is in order. This means no surprises and a much better chance of success.
      3. We'll submit the mortgage application on your behalf. As with everything we do, you don't need to worry about complex paperwork - we'll handle every detail for you.
  • We'll double and triple check your application to make sure that it's as strong as it can possibly be. Once we submit it to the lender, it goes to their underwriter. It's their job to make sure all the documents are in order. They'll also organise a mortgage survey to check the property is something they're happy to lend money for.
  • Top tip: We've got great connections

    1. Because we've built strong relationships in the industry, we can sometimes chat directly to your underwriter. This is a huge help for you because it means we can fine-tune the application to maximise your chances of success.
    2. You'll get a mortgage offer once the lender is happy with your application. The time it takes depends on the lender, but in general it tends to be quicker when you've got a broker like us on your side to work directly with them. We make sure they've got everything they need to make a decision.
    3. Some mortgage brokers finish working with you once you've got your offer. We do things differently at Alexander Hall. We'll stay in touch with you, your estate agent, solicitor and surveyors all the way through to completion. We'll keep in contact with you after that too, making sure that as and when your needs change, your deal remains the most suitable and competitive on the market.

    New build normally means it either hasn't been built yet, or it's been completed but never sold or occupied (including show homes).

    Many mortgage lenders also count new builds as:

    • any conversion (such as a townhouse into flats)
    • a substantially renovated or extended property
    • homes built in the last couple of years

    New builds are a popular choice, particular for first-time buyers. Many housing associations offer you the option of shared ownership.

    Read More

    We can help you decide if a new build is the right choice. One benefit is that you can often tailor the specifications to your own taste, and you can move in immediately, no need for any improvements and no previous owners to worry about.

    There are some extra points to consider though, and we can help you think it all through:

    Holding deposit and exchange deadline

    Normally you need to give a holding deposit to the developer when buying a new build. Terms and conditions vary so we'll tell you exactly what to look for when you check through them. One key point is on refunds ‐ will you get the deposit back if you don't secure a mortgage or you change your mind?

    Alongside deposits, the developer will expect you to exchange contracts within a short timeframe, usually four weeks. The developer may let other people reserve a property if this timeframe is not met. Exchanging contracts will commit you and the developer to going ahead, so it is important you get the right mortgage quickly to avoid any last-minute worries.

    This means buying a property based on the specifications, but before it's built. It can take up to 12 months ‐ sometimes longer ‐ for an off‐plan property to be finished and ready for you to move in.

    When buying at this very early stage, it's a good idea to ask your developer when you'd be expected to complete. This is because you might want your mortgage lender to extend or renew their offer, sometimes more than once. You can end up paying multiple additional fees for re‐valuation.

    When you're buying off‐plan, it's a good idea to speak to your mortgage broker to find out what to ask your developer. We can advise you on everything you need.

    What about off‐plan mortgage offers?

    Many mortgage offers are valid for six months. Some lenders' timescales are longer, and others will offer allowances for extending mortgage offers, as long as your circumstances don't change.

    After a certain period, your lender may ask their surveyor to conduct a re‐inspection or re‐valuation of your property. This confirms that the property's expected value is still in line with the amount you need to borrow.

    We give you exclusive access to special new build services from some lenders. These can streamline the whole buying process and improve the likelihood of a successful purchase. They can be particularly helpful when your estimated completion date is far in the future. Give us a call to find out more. We're always happy to help.

    What about deposit requirement and loan to value (LTV)?

    Normally the value of a property can be assessed by looking at how much previous owners bought it for. This sort of information isn't available for a new build though, particularly if it's in an undeveloped area such as a new suburb.

    To increase their security, some lenders will limit the maximum loan to value (LTV) they offer for new build properties. In some cases, additional limitations will also apply if you're buying a flat. This means that to secure a mortgage in these cases, most lenders will need a larger deposit.

    We give you comprehensive access to lenders who will offer you a mortgage on a new build property and those who accept smaller deposits.

    Get in touch and we can talk you through it all.

    In basic terms, this is where one person agrees to buy a property off‐plan, but sells it on before completing. If we talk about Buyer A and Buyer B, this is how it works:

    • Buyer A exchanges contracts and puts down a deposit.
    • Before completing they agree to sell to Buyer B, typically at a higher price.
    • Buyer A “reassigns” the contract to Buyer B.
    • Buyer B now has the rights to complete the transaction.

    If you buy a property on a reassigned contract you could end up paying less that the latest market price. For example, the original buyer could pay £275k, and the property could go up in value to £350k before they decided to sell on the contract. To make a quick sale, they could offer it to you for £325k, so you both get a good deal.

    You also don't have the long completion date often associated with off‐plan purchases, but it does come with additional risks. Many lenders won't offer a mortgage based on contract reassignment, so it's important to seek detailed legal advice from your solicitor and discuss it with your mortgage adviser.

    We give you access to a number of lenders happy to consider contract reassignment purchases, with some limitations. If you want to take this route, feel free to give us a call and talk it through. It's important we know all the details of your purchase, so we can make sure you get the best advice for your particular circumstances.

    Can you buy from abroad through contract reassignment?

    New build developments are an attractive option if you're overseas and want investment property in the UK.

    We give you access to lenders who'll consider applications from non‐UK citizens and UK ex‐pats for both standard off‐plan purchases and contract reassignments.

    If you need to transfer funds to the UK, we recommend our currency exchange partner. Just call us for more details ‐ we're always happy to talk things through.

    What government schemes are available to help me buy my home?

    Over the years, the government has introduced a number of different schemes to help. They are designed to make it easier to own your own home, at a time when property prices are rising faster than many people's incomes.

    The two main schemes currently available are Shared Ownership, which involves a housing association or housing authority, and the government's scheme.

    If you're a first-time buyer, a Shared Ownership scheme is another useful option. This is how it works:

    • You buy a share of between 25% and 75% of your new home.
    • You pay a subsidised rent on the remaining share to the housing association or housing authority, along with a monthly service charge.

    The share you can purchase will depend on the vendor, what you can afford and the eligibility criteria.

    Who is eligible?

    This can vary slightly between different housing associations. However, shared ownership is normally only available if you're a first-time buyer. Some housing associations also consider non-first time buyers in certain circumstances. This could be if you're buying your first property alone after a divorce or family breakdown.

    Other exceptions will depend upon the housing association's individual terms. Many housing associations require buyers to be UK/EU/EEA citizens while others will consider non-UK citizens, subject to visa status.

    Staircasing

    This means buying additional shares in a Shared Ownership property. You can do this at any time, normally at a minimum of a further 10% share each time. The housing association instructs an RICS surveyor to conduct the valuation and normally as you are the applicant, you pay the valuation fee. The current market value will dictate the price you pay.

    Stamp Duty Land Tax (SDLT)

    When you buy a share in a property, you're liable to pay Stamp Duty Land Tax (SDLT).

    You can pay it in two ways:

    A one-off payment.
    This is based on the total market value of the property at the time of the original purchase. This is known as making a ‘market value election’.
    In stages.
    You may make your first payment on the price you pay for the lease, but only if it's above the SDLT threshold. Once you increase your share of the property to 80%, you then must pay on both the transaction that took you over that percentage, and any further transactions.

    If you're purchasing a Shared Ownership property, ask your solicitor for advice on which SDLT payment option is best for you.

    We give you access to a number of lenders who'll consider a shared ownership application. Currently, the minimum deposit required is just 5% of the property's full market value.

    See our stamp duty calculator

    Arranging a buy-to-let (BTL) mortgage is similar to any other mortgage, and you can read details in our 'How does the mortgage process work' guide.

    There is one key difference though, based on the fact you plan to rent the property out.

    If you want a mortgage for a property you will live in, a lender will look at many factors, including your personal income and expenditure to help decide if they are happy to make you an offer.

    However, with BTL the lender will also take into account how much you will be able to rent the property out for.

    There are some important decisions you need to make when deciding to buy a property to let, but we can guide you smoothly through everything. It's different for everyone, so here's a really simple guide to work out what's best for you:

    Market, regulation and mortgages

    Being a landlord can be a great way to increase your income, or to acquire a property as a longer term investment. And in order to make it as profitable as possible, it's vital to get clear advice from a professional mortgage adviser. That's where we can help. We know the latest UK legislation and regulation inside out and can advise you on the detail of your mortgage requirements and put you in touch with tax specialists who can guide you on the most tax efficient way of purchasing a rental property.

    Being confident you can afford it

    Lenders traditionally calculate how much you can borrow by looking at the property's value and the expected rental income.

    It's standard practice to build in a buffer too. T his allows for hidden costs such as the property sometimes being empty, paying estate agency fees and spending on maintenance. It is calculated by using what's known as the interest coverage ratio (ICR). The ICR determines the amount the lender would like the rental income to be, to cover the mortgage and other costs.

    Recent regulation changes mean these calculations have got stricter. Lenders will also 'stress‒test' the mortgage, to make sure that an increase in interest rates won't cause any problems and you will still make a profit. The minimum stress test rate is either 5.5%, or 2% above the actual mortgage rate ‒ whichever is higher.

    Here's an example based on a £200,000 mortgage, using a typical ICR of 145% of mortgage interest and stress testing using an interest rate of 5.5%. The minimum rent required works out at £1,329 per month.

    Taking personal income into account

    This is known as income top‒slicing. Some lenders will factor in your personal income if the stress-tested monthly rental calculation explained above falls short. They will look at how much you earn compared to all you spend, including your residential mortgage, household expenditure and rental property costs.

    If you have extra income after covering all your outgoings, these lenders will combine it with expected rent to calculate the maximum you can borrow.

    If you already own 4 or more properties, or have the ambition to build your portfolio, there are now additional regulatory requirements for lenders to factor in to their assessments. The regulation is not prescriptive but some examples include the lender's relationship with the borrower, how much experience the borrower has as a landlord and a view of the borrower's overall property portfolio.

    We have many clients who are classed as 'portfolio landlords' and have expertise in helping clients refinance and build their property portfolios, with strong relationships with all the key lenders in this market.

    There's a common myth that the self-employed find it hard to get a mortgage. While the options will vary, there are a number of competitive solutions. To learn more, it's essential to talk to a knowledgeable mortgage adviser.

    A number of lenders specialise in self-employed mortgages and have developed a range options that rely on different criteria.

    This can include:
    • Lending against your most recent year's income, rather than an average of the last two or three years
    • Lending against your company net profit - rather than just salary and dividends to reach a potentially more positive lending amount
    • Consideration of your daily rate if you're a contractor.

    Lenders will need to see specific documentation if you're self-employed. This will depend on your circumstances and we can advise on exactly what it means for you. It's best to discuss this with us as soon as possible to give you enough time to pull everything together.

    Sole trader, director, contractor or partner?

    The type of self-employed role you have affects how a lender assesses your suitability. Here's a brief overview of the main considerations:

    Sole trader

    Most lenders ask for a minimum of two years' of your full trading accounts and personal HMRC tax overviews. They'll typically also take the average of either two or three years' of your net profit before tax.

    Some lenders will consider an application if you have only one full trading year, though this depends on your circumstances. For example, have you have switched from employed to self-employed in the same line of work?

    In addition to tax overviews, you'll need to provide bank statements showing your trading income. If you use a separate account for business transactions, you'll need to be able to show these account statements to your lender.

    Director

    A lender may class you as employed, but normally only if your share in the company is small. The threshold varies from 5% upwards, but if it's 20% or more, most lenders will consider you as self-employed.

    The lender will usually require additional documentation to show that the business is solvent, and some will take into account your share of profits, in addition to your salary and any dividends.

    Contractor

    While contractors are typically company directors, many lenders acknowledge the fact that these arrangements are not the same as a corporate company director. This is reflected in their tailored affordability assessments.

    Some lenders will assess contractors using the same affordability assessment as any other company director. However, where this limits the borrowing capacity, there are other options available. The lender can undertake an affordability assessment as if you're employed and reference the gross contract daily rate as income. This will be subject to certain conditions, including history and continuity of contracts.

    Partner

    Lenders take a range of approaches to assess income and affordability for partners in firms. The options available to you will depend on a number of factors. These include the particular structure of pay, the percentage equity holding in your partnership and the size and nature of the partnership itself.

    There are tailored options available for partners of different sized firms, ranging from small local businesses to large multi-national firms. You'll need your compensation/drawings/reward statements for the latest year. Ideally, you should have details of the previous one to two years too. You will also need to show details of how you structure your remuneration within the partnership. Lenders may ask for a reference from a senior or managing partner in the business, depending on the circumstances.

    Stamp Duty Land Tax (SDLT)

    SDLT is tax you pay when you buy a property. There is a standard calculation when you buy your main home, which goes up the more expensive it is. The same applies when buying further properties, but includes an additional 3% rise.

    You need to pay this supplement whether it's a second home, a new home if planning to rent out your current one (known as 'let to buy'), or a BTL purchase, even if you're living in rented accommodation yourself.

    You can't avoid the 3% by saying you own one property and having your spouse buy the second in their name. You and your spouse are considered to be one 'unit'.


    Stamp Duty Land Tax Examples
    Purchase price SDLT
    £250,000 £10,000
    £400,000 £22,000
    £550,000 £34,000

    Income tax

    You are liable to pay tax on income earned from rental property. This is income tax if it's a personal purchase, or corporation tax if you own it through a limited company. The amount depends on rental income, mortgage interest and other tax-deductible costs.

    Tax Relief Examples
    Period Tax relief @ highest tax rate Tax relief @ basic rate (20%)
    Up to March 2017 100% 0%
    April 2017 to March 2018 75% 25%
    April 2018 to March 2019 50% 50%
    April 2019 to March 2020 25% 75%
    From April 2020 0% 100%

    It's important to get professional tax advice on this before making any decisions about purchasing your BTL.

    Accountants

    Many landlords use an accountant. It's an additional cost, but they can often help you reduce the tax you need to pay, saving you money in the long run. Ideally you want someone who is a specialist in property tax and has experience advising landlords.

    Tax relief affects your decision on this. Between now and 2020, the amount of tax relief for BTL landlords will gradually change until the entire mortgage payment only attracts the basic rate (currently 20%). Here's a summary of how the transition is happening:

    Tax Relief Examples
    Period Tax relief @ highest tax rate Tax relief @ basic rate (20%)
    Up to March 2017 100% 0%
    April 2017 to March 2018 75% 25%
    April 2018 to March 2019 50% 50%
    April 2019 to March 2020 25% 75%
    From April 2020 0% 100%

    What does that mean for me?

    Buying a property in your own name

    These changes will not affect you if you are a basic rate tax payer and will remain one once all taxable income including your rent has been accounted for.

    You will pay more income tax under the new rules if you are a higher or additional rate tax payer, or will become one once your rental income is accounted for. This will mean either reduced profit, or potentially a net loss after tax.

    Buying a property via a limited company (special purpose vehicle or 'SPV')

    This option can be more tax efficient for higher and upper rate tax payers. However, remember that being a limited company comes with other responsibilities. You will be a company director and need to abide by the Companies Act 2006, there are likely to be additional admin time and costs involved, and professional fees may be higher.

    What does this mean for my mortgage?

    At the moment a few lenders will consider offering a mortgage on a limited company basis, and their interest rates and fees will typically be higher than what they offer to personal landlords.

    Whether it ultimately works out cost effective for you depends on your income, mortgage rates, and fees, along with capital gains tax, inheritance tax and income from dividends.

    It's up to you to follow legislation, including regular inspections and maintaining tenants' rights. You must handle repairs and maintenance, rent collection, tax payments and other legal requirements correctly. Items to keep up‒to‒date include:

    • Annual gas safety inspection
    • Energy Performance Certificate
    • Property and landlord insurance
    • Liability insurance

    You can either manage everything yourself or hire professionals to take care of it for you. For example, you can avoid all the hassle of day‒to‒day management by taking on a fully managed service from your letting agent. Our sister company Foxtons can do exactly that for you.

    Moving from a home you already own isn’t much different from buying your first property. There are just a few extra things to think about, and we can help you with it all.

    You might want to keep it really simple, selling where you live and buying your next place. Or you might prefer to keep your existing home and rent it out, which is known as ‘ let to buy’. This could be a one-off investment, or an exciting step towards having a property portfolio. Whatever your plan, we can give you easy-to-understand, hassle-free advice about your options.

    Read More

    Decide early

    The sooner you know what you want to do the better. If you plan to sell your home, we recommend getting it on the market as soon as possible. If you decide to rent your existing home, gather rental estimates from letting agents so you know how much tenants will be willing to pay. Normally you also have to convert your mortgage to a ‘ buy to let’.

    We’ll carefully walk you through your mortgage options, keeping things clear and simple. You may want to ‘ port’ your existing deal over to your new mortgage. We’ll advise if that’s the best option, or if you’d benefit more from taking a new deal.

    You’ll get all the pros and cons so you have the complete picture.

    Finding the right solicitor

    Once you’d decided, we can help you find the ideal solicitor to make sure all legal aspects go smoothly. You can choose any solicitor as long as they are registered on the lender’s legal panel. We have great recommendations if you need them.

    Choosing a lender

    Different lenders are suitable for different situations, so when you’ve found the property you want to buy, we’ll give you advice on who to approach for the mortgage.

    It will partly depend on whether you are selling or letting your existing home. We will also look at how you prioritise landing a competitively priced deal and the need to move quickly. With our support you’ll find a lender with just the right balance for you.

    guides logo

    Shared ownership guides

    It's easy to navigate the mortgage process when you have a broker that really understands your situation and budget. We'll pull together all the information you need, spending time with you to get everything just perfect.

    We'll ask you questions like:
    • What are your plans for the future?
    • What type of job do you do?
    • What's your income and pay structure?
    • What are your family circumstances?

    We'll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence.

    That way, when you're ready to make a decision, you can do so knowing that you've got all the facts.

    Our mortgage advisers work closely with you to save you time and give you the very best chance of a successful application.

    During the application process, we'll:

    • Talk you through all your options with a free consultation
    • Recommend the right mortgage for your situation
    • Check how much you can afford to borrow
    • Help you to gather the information and documents you need for your application
    • Help you prepare your application for submission
    • Submit your application to the lender
    • Liaise with the lender, solicitors and estate agents.

    Once your mortgage has been offered, we'll support you all the way through to completion.

    We'll work hard to build a lasting relationship with you.

    So you'll always have someone you trust to help with any queries or requirements in the future.

    We want to make buying a property as simple as possible. The process may sound complex, but we take away all the stress and manage all the paperwork for you.

    Here's an overview of what happens:

    • First, we'll work with you to set your mortgage budget
    • You start the exciting bit ‐ viewing properties
    • We help you make and secure an offer on the place you want
    • You instruct a solicitor to handle the legal side of things
    • We finalise and submit your mortgage application to your chosen lender
    • They will survey the property to make sure the mortgage you want is reasonable
    • Once they are happy with the valuation, they'll make you an official mortgage offer
    • Your solicitor completes the legal process so you can exchange contracts and pay your deposit

    That's it! The home is now yours and it's time to collect the keys.

    Here's our step-by-step guide
    1. Before you start looking for a property, it's important to speak to one of our advisers. We'll use our expertise to help you work out how much you can borrow, set a budget, and decide what types of properties you will be able to get a mortgage for. It is important to speak to one of our advisers about an Agreement in Principle.
    2. Next, it's time to register with estate agents, getting a property valuation (if you're already a homeowner) and start viewings. You'll be able to really focus your search because you'll know exactly what your finances will cover.
    3. The property market moves fast, so once you've found a place you like, put in an offer as soon as you can. You'll likely then negotiate with the seller on price. When your offer is accepted, the estate agent may ask you for a deposit.
    4. Next, we'll help you find a property solicitor or licensed conveyancer. They'll handle all the legal paperwork for you, and it's a good idea to use a professional who knows the area you want to move to. Later in the process they'll also manage the exchange of contracts, deposit payment and money transfers from the lender to the seller. They're experts so you can relax knowing it's all in safe hands.
    5. There's now a further opportunity to fine-tune the details of your mortgage application. We do all this for you, and submit the application on your behalf.
    6. The lender will then survey the property to make sure that it's suitable for the mortgage. We recommend that you arrange a separate valuation too. This will give you peace of mind that the lender has made a fair assessment. There are two options available for this: a Homebuyer's Report or the more comprehensive Building Survey. If that sounds complicated, don't worry ‐ we can recommend independent surveyors you can trust.
    7. You'll get a mortgage offer once the lender is happy with everything. This will be sent to you and your solicitor so together you can check it over carefully before signing. Send it back to the lender and your mortgage is in place.
    8. It's time to exchange contracts with the seller. You'll pay a 10 per cent non-returnable deposit and now you're committed to buying. If you pull out after that, you won't get the deposit back and may have to pay extra costs. As soon as you exchange contracts, it's your responsibility to insure the property so you must have buildings insurance cover.
    9. It can take anything from a few days to a few weeks to complete the sale once you've exchanged contracts. In this time the remaining money (usually the 90 per cent not covered by the deposit) is transferred from your solicitor to the buyer's. On completion day, a few legal details are tied up, you get the keys, and the place is yours.

    Top tip: Be prepared

    Make sure you arrange insurance early in the process, because you can't exchange without it. We can help you with this and recommend providers.

    Getting a mortgage is important, but it doesn't have to be complicated. We'll handle every step for you, deal with all the paperwork and take away all the hassle. Here's a quick overview of how the process works and how we will help you:

    • We'll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you're looking for properties in the right price bracket.
    • We'll explain all the documentation we'll need to put together to support your application.
    • Once you've found a property, we'll find your ideal mortgage and manage the application process for you. We'll make it as simple as possible.
    • The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it's affordable for you. This might include asking for a reference from your employer or accountant
    • Once the lender's happy with all the checks, they'll make a formal mortgage offer. Then we'll help you complete the legal details and exchange contracts with the seller. We'll be there to talk you through every single piece of paper so you don't need to worry about a thing.

    Want more detail about the process?

    Here's our step-by-step guide
    1. It's best to speak to us before you start looking at properties. We can help you narrow down your search by focusing only on homes within your price range. This will save you time so you find your perfect place quicker.
    2. Here's what will happen when you first meet one of our advisers:
      1. We'll get to know you and how much you already understand about mortgages.
      2. We'll pull together all the information and documents a lender will need from you, ready for when you make an application.
      3. With your permission, we'll carry out a credit check with the lender to produce an Agreement in Principle (AIP).

    Top tip: You're in safe hands

    We know that making multiple credit checks can affect your credit rating, but don't worry, we are experts in this area. We'll only do what's necessary to make sure you get the best possible mortgage.

    1. Once you've got your AIP, you can start looking for properties with total confidence. You'll know exactly what your budget will cover and what types of home lenders will approve a mortgage for.

    Top tip: We're with you all the way

    Bear in mind that not all lenders approve mortgages on all types of property. Chat things through with us regularly during your property search and we'll make sure you stay on the right track.

    1. Found a great property and had an offer accepted? That means it's time for another meeting with us. Here's what we'll cover:
      1. We'll recap all the information we put together when we first met. Things move quickly now, so it's important we have all the right documents to hand.
      2. Then we'll go through the fine detail about your lender's policy to give you complete confidence about going forward. The great thing about working with Alexander Hall is that we've got excellent relationships with lenders and we can often speak directly to them to make sure everything is in order. This means no surprises and a much better chance of success.
      3. We'll submit the mortgage application on your behalf. As with everything we do, you don't need to worry about complex paperwork - we'll handle every detail for you.
  • We'll double and triple check your application to make sure that it's as strong as it can possibly be. Once we submit it to the lender, it goes to their underwriter. It's their job to make sure all the documents are in order. They'll also organise a mortgage survey to check the property is something they're happy to lend money for.
  • Top tip: We've got great connections

    1. Because we've built strong relationships in the industry, we can sometimes chat directly to your underwriter. This is a huge help for you because it means we can fine-tune the application to maximise your chances of success.
    2. You'll get a mortgage offer once the lender is happy with your application. The time it takes depends on the lender, but in general it tends to be quicker when you've got a broker like us on your side to work directly with them. We make sure they've got everything they need to make a decision.
    3. Some mortgage brokers finish working with you once you've got your offer. We do things differently at Alexander Hall. We'll stay in touch with you, your estate agent, solicitor and surveyors all the way through to completion. We'll keep in contact with you after that too, making sure that as and when your needs change, your deal remains the most suitable and competitive on the market.

    New build normally means it either hasn't been built yet, or it's been completed but never sold or occupied (including show homes).

    Many mortgage lenders also count new builds as:

    • any conversion (such as a townhouse into flats)
    • a substantially renovated or extended property
    • homes built in the last couple of years

    New builds are a popular choice, particular for first-time buyers. Many housing associations offer you the option of shared ownership.

    Read More

    We can help you decide if a new build is the right choice. One benefit is that you can often tailor the specifications to your own taste, and you can move in immediately, no need for any improvements and no previous owners to worry about.

    There are some extra points to consider though, and we can help you think it all through:

    Holding deposit and exchange deadline

    Normally you need to give a holding deposit to the developer when buying a new build. Terms and conditions vary so we'll tell you exactly what to look for when you check through them. One key point is on refunds ‐ will you get the deposit back if you don't secure a mortgage or you change your mind?

    Alongside deposits, the developer will expect you to exchange contracts within a short timeframe, usually four weeks. The developer may let other people reserve a property if this timeframe is not met. Exchanging contracts will commit you and the developer to going ahead, so it is important you get the right mortgage quickly to avoid any last-minute worries.

    This means buying a property based on the specifications, but before it's built. It can take up to 12 months ‐ sometimes longer ‐ for an off‐plan property to be finished and ready for you to move in.

    When buying at this very early stage, it's a good idea to ask your developer when you'd be expected to complete. This is because you might want your mortgage lender to extend or renew their offer, sometimes more than once. You can end up paying multiple additional fees for re‐valuation.

    When you're buying off‐plan, it's a good idea to speak to your mortgage broker to find out what to ask your developer. We can advise you on everything you need.

    What about off‐plan mortgage offers?

    Many mortgage offers are valid for six months. Some lenders' timescales are longer, and others will offer allowances for extending mortgage offers, as long as your circumstances don't change.

    After a certain period, your lender may ask their surveyor to conduct a re‐inspection or re‐valuation of your property. This confirms that the property's expected value is still in line with the amount you need to borrow.

    We give you exclusive access to special new build services from some lenders. These can streamline the whole buying process and improve the likelihood of a successful purchase. They can be particularly helpful when your estimated completion date is far in the future. Give us a call to find out more. We're always happy to help.

    What about deposit requirement and loan to value (LTV)?

    Normally the value of a property can be assessed by looking at how much previous owners bought it for. This sort of information isn't available for a new build though, particularly if it's in an undeveloped area such as a new suburb.

    To increase their security, some lenders will limit the maximum loan to value (LTV) they offer for new build properties. In some cases, additional limitations will also apply if you're buying a flat. This means that to secure a mortgage in these cases, most lenders will need a larger deposit.

    We give you comprehensive access to lenders who will offer you a mortgage on a new build property and those who accept smaller deposits.

    Get in touch and we can talk you through it all.

    In basic terms, this is where one person agrees to buy a property off‐plan, but sells it on before completing. If we talk about Buyer A and Buyer B, this is how it works:

    • Buyer A exchanges contracts and puts down a deposit.
    • Before completing they agree to sell to Buyer B, typically at a higher price.
    • Buyer A “reassigns” the contract to Buyer B.
    • Buyer B now has the rights to complete the transaction.

    If you buy a property on a reassigned contract you could end up paying less that the latest market price. For example, the original buyer could pay £275k, and the property could go up in value to £350k before they decided to sell on the contract. To make a quick sale, they could offer it to you for £325k, so you both get a good deal.

    You also don't have the long completion date often associated with off‐plan purchases, but it does come with additional risks. Many lenders won't offer a mortgage based on contract reassignment, so it's important to seek detailed legal advice from your solicitor and discuss it with your mortgage adviser.

    We give you access to a number of lenders happy to consider contract reassignment purchases, with some limitations. If you want to take this route, feel free to give us a call and talk it through. It's important we know all the details of your purchase, so we can make sure you get the best advice for your particular circumstances.

    Can you buy from abroad through contract reassignment?

    New build developments are an attractive option if you're overseas and want investment property in the UK.

    We give you access to lenders who'll consider applications from non‐UK citizens and UK ex‐pats for both standard off‐plan purchases and contract reassignments.

    If you need to transfer funds to the UK, we recommend our currency exchange partner. Just call us for more details ‐ we're always happy to talk things through.

    What government schemes are available to help me buy my home?

    Over the years, the government has introduced a number of different schemes to help. They are designed to make it easier to own your own home, at a time when property prices are rising faster than many people's incomes.

    The two main schemes currently available are Shared Ownership, which involves a housing association or housing authority, and the government's scheme.

    If you're a first-time buyer, a Shared Ownership scheme is another useful option. This is how it works:

    • You buy a share of between 25% and 75% of your new home.
    • You pay a subsidised rent on the remaining share to the housing association or housing authority, along with a monthly service charge.

    The share you can purchase will depend on the vendor, what you can afford and the eligibility criteria.

    Who is eligible?

    This can vary slightly between different housing associations. However, shared ownership is normally only available if you're a first-time buyer. Some housing associations also consider non-first time buyers in certain circumstances. This could be if you're buying your first property alone after a divorce or family breakdown.

    Other exceptions will depend upon the housing association's individual terms. Many housing associations require buyers to be UK/EU/EEA citizens while others will consider non-UK citizens, subject to visa status.

    Staircasing

    This means buying additional shares in a Shared Ownership property. You can do this at any time, normally at a minimum of a further 10% share each time. The housing association instructs an RICS surveyor to conduct the valuation and normally as you are the applicant, you pay the valuation fee. The current market value will dictate the price you pay.

    Stamp Duty Land Tax (SDLT)

    When you buy a share in a property, you're liable to pay Stamp Duty Land Tax (SDLT).

    You can pay it in two ways:

    A one-off payment.
    This is based on the total market value of the property at the time of the original purchase. This is known as making a ‘market value election’.
    In stages.
    You may make your first payment on the price you pay for the lease, but only if it's above the SDLT threshold. Once you increase your share of the property to 80%, you then must pay on both the transaction that took you over that percentage, and any further transactions.

    If you're purchasing a Shared Ownership property, ask your solicitor for advice on which SDLT payment option is best for you.

    We give you access to a number of lenders who'll consider a shared ownership application. Currently, the minimum deposit required is just 5% of the property's full market value.

    See our stamp duty calculator

    There's a common myth that the self-employed find it hard to get a mortgage. While the options will vary, there are a number of competitive solutions. To learn more, it's essential to talk to a knowledgeable mortgage adviser.

    A number of lenders specialise in self-employed mortgages and have developed a range options that rely on different criteria.

    This can include:
    • Lending against your most recent year's income, rather than an average of the last two or three years
    • Lending against your company net profit - rather than just salary and dividends to reach a potentially more positive lending amount
    • Consideration of your daily rate if you're a contractor.

    Lenders will need to see specific documentation if you're self-employed. This will depend on your circumstances and we can advise on exactly what it means for you. It's best to discuss this with us as soon as possible to give you enough time to pull everything together.

    Sole trader, director, contractor or partner?

    The type of self-employed role you have affects how a lender assesses your suitability. Here's a brief overview of the main considerations:

    Sole trader

    Most lenders ask for a minimum of two years' of your full trading accounts and personal HMRC tax overviews. They'll typically also take the average of either two or three years' of your net profit before tax.

    Some lenders will consider an application if you have only one full trading year, though this depends on your circumstances. For example, have you have switched from employed to self-employed in the same line of work?

    In addition to tax overviews, you'll need to provide bank statements showing your trading income. If you use a separate account for business transactions, you'll need to be able to show these account statements to your lender.

    Director

    A lender may class you as employed, but normally only if your share in the company is small. The threshold varies from 5% upwards, but if it's 20% or more, most lenders will consider you as self-employed.

    The lender will usually require additional documentation to show that the business is solvent, and some will take into account your share of profits, in addition to your salary and any dividends.

    Contractor

    While contractors are typically company directors, many lenders acknowledge the fact that these arrangements are not the same as a corporate company director. This is reflected in their tailored affordability assessments.

    Some lenders will assess contractors using the same affordability assessment as any other company director. However, where this limits the borrowing capacity, there are other options available. The lender can undertake an affordability assessment as if you're employed and reference the gross contract daily rate as income. This will be subject to certain conditions, including history and continuity of contracts.

    Partner

    Lenders take a range of approaches to assess income and affordability for partners in firms. The options available to you will depend on a number of factors. These include the particular structure of pay, the percentage equity holding in your partnership and the size and nature of the partnership itself.

    There are tailored options available for partners of different sized firms, ranging from small local businesses to large multi-national firms. You'll need your compensation/drawings/reward statements for the latest year. Ideally, you should have details of the previous one to two years too. You will also need to show details of how you structure your remuneration within the partnership. Lenders may ask for a reference from a senior or managing partner in the business, depending on the circumstances.

    Want to know more?

    Expert commercial mortgage advice tailored to you

    Call our expert advisers now

    08000 38 37 36