
Mortgage & Insurance FAQs
At SJR Mortgages, we’re here to support you through the entire process of the mortgage process. Answer all your questions for both insurances, mortgages and more.
So just relax.
Frequently Asked Mortgage Questions (FAQs)
What is a mortgage?
A mortgage is a loan that you take out which is secured against the property.
What is a buy to let mortgage?
A buy to let mortgage is where you buy a property specifically as an investment with the intention of letting it out.
How much can I borrow?
Every lender calculates this differently. The amount you are eligible to borrow is determined by your income, outgoings, deposit and credit history.
What is a remortgage?
This is swapping from one lender to another. A remortgage is commonly applied for up to 6 months before your current deal expires.
What is conveyancing?
Also referred to as solicitors, conveyancers complete the legal work associated with the property transaction.
How do I prove my income?
Employed individuals would need to provide 4 latest months payslips and corresponding bank statements.
Self-employed individuals would need to provide accounts as SA302s and Tax Year Overviews or Full company accounts for Ltd companies.
How long do I take my mortgage out for?
Mortgage terms will have a cap based on what you can afford and the maximum term that the lender provides. Some lenders provide mortgages up to 40 years. The longer the term, the more interest you pay.
What fees are involved with taking out a mortgage?
- Valuation fee – charged by the lender to value the property.
- Solicitors fees – charged by the solicitor for completing the legal paperwork.
- Stamp duty land tax – a tax levied by the government which will vary based on your buyer status and the property value.
- Lender product fee – Charged by the lender for arranging the loan. Typically, they offer an enhanced rate with a product fee.
What if I want to rent out my property?
You will need to seek permission from the mortgage lender and they may change the terms of your mortgage.
What is a mortgage in principle?
Also termed as an agreement in principle or a decision in principle, they indicate whether your credit score and declared income is good enough to borrow the requested amount. You do not need to proceed with this lender when applying for the full mortgage.
What is a credit score?
This is a score that represents how you have conducted your finances over the preceding six years and is used by mortgage lenders to assess your credit worthiness.
What is the difference between fixed and variable?
Frequently asked mortgage insurance questions (FAQs)
Can my mortgage be covered with life insurance?
Whilst it is not directly linked to the mortgage, you can take out a policy which follows the mortgage balance and pays a tax-free lump sum to clear the mortgage.
What insurance do I need when taking out a mortgage?
If you are purchasing a freehold property, the lender will require you to have buildings insurance in place. Other protection policies are not compulsory, but strongly advised if you have no suitable arrangements in place.
How do I make a claim?
Contact your insurance provider and a dedicated claims team will explain the next steps.
Am I eligible for income protection if I’m self-employed?
Yes, you’re eligible for income protection. However, with all insurance policies, exclusions apply.
What is a deferred period?
This is the period that you choose to wait before the policies starts to pay out. The longer the deferred period, the cheaper your monthly premium is likely to be.