List of your most commonly asked questions, with our answers. Also an explanation to some of the commonly used ‘mortgage terms.’

If you have any other questions, or you would like the following further explained, please do not hesitate to call us immediately. We will explain everything you need to know as simply as possible.

What does the term Sub-Prime mean?

This term is used to Lenders who offer mortgages to people who are unable to fit the strict lending terms laid down by high street lenders. High street and direct lenders have become increasingly reliant on using credit-scoring techniques to determine whether applicants qualify for a mortgage. These techniques have always excluded a large number of people who for example cannot prove their income or who may have credit problems due to County Court Judgements, mortgage arrears or IVAs or who may have been declared bankrupt in the past.

What types of mortgages do Amortgageshop offer?

We offer a wide range of mortgage products:

FULL STATUS
for borrowers who are able to provide proof of their income.
"BUY TO LET" PRODUCTS
For borrowers wanting to purchase residential investment property.
RIGHT TO BUY
For borrowers who are buying their property from a local authority under a Right to buy scheme.
FLEXIBLE MORTGAGES
For borrowers wanting more control over their finances.

We offer all these products on a capital repayment or interest only basis or a combination of both under a Part and Part method.

What is meant by Capital repayment?

Where interest and capital are paid together monthly until, at the end of the term, assuming that all payments have been me on time, the whole loan will be repaid.

What is meant by Interest Only payment?

Where only the interest on the loan borrowed is paid during the mortgage term. You must make other arrangements to repay the loan and the end of the term. e.g.; using an endowment or pension policy, personal equity plan, ISA etc.

Do you accept all types of property?

We provide mortgages on residential properties only. However, we do not accept properties with agricultural restrictions, farms and smallholdings, steel framed properties, ex-local authority flats or maisonettes, flats in blocks with more than 6 floors, any property listed under the Housing Act 1985 and certain types of concrete construction.

What are the minimum and maximum terms?

The minimum term is 5 years and the maximum term is 35 years.

What interest rate options are available?

We will offer a product based on LIBOR plus the appropriate product margin, which varies from product to product. From time to time, we may offer special fixed or discounted variable rate options to new applicants.

What is LIBOR and how is it calculated?

LIBOR (London Inter-bank Offer Rate) is calculated by reference to the rate of interest that London banks themselves have to pay to borrow money. It is a rate that is "independent" of the Company.

What is the Higher Loan Fee?

One-off fee payable by completion, which can usually be added to the loan. It covers the lender for the additional risk in lending a higher amount against the property value than would otherwise be the case. The fee is generally calculated at 5% of the balance of the loan above 75% of the value or purchase price (whichever is lower).

What is meant by Leasehold?

Possession of land or buildings for a term fixed in the lease.

What is meant by Freehold?

Outright ownership of land or property.

What is Title Insurance, why should I consider it?

We have arranged insurance which enables the solicitor to complete without a local search (see below) and without making a number of other enquiries relating to title, reducing the time it takes to complete. The flat fee covers us for the cost of this insurance.

What is a Local Authority Search?

Searches carried out by the solicitor, through the Local Authority, relating to the property to be purchased. A local search only relates to the property itself, and does not provide information about any planned developments in the neighbourhood, except for major roadwork's within 200 metres of the property.

How much can I borrow?

We will lend up to 90% of the purchase price or value of the property (whichever is the lower). You could borrow as little as £10,000 or as much as £1,000,000. Please note there may be a specific maximum which applies to an individual product.

How long must I have been employed?

Applicants must normally have been employed with the current employer for a minimum of 3 months. A reference in acceptable format is required, or latest automated P60 and last 3 month’s payslips. Verification is also required for previous employments if the applicant has been with the current employer for less than 6 months