Frequently Asked Questions

Where to start with your mortgage

Are mortgage rates expected to drop?

Mortgage rates are not expected to drop due to the current economic climate. It is more than likely that interest rates will increase over time, but with the current uncertainty it is very difficult to say what will happen. Speak to your mortgage adviser so that you can make sure you are getting the best and right advice for your needs.

Can mortgage insurance increase?

Depending on the type of mortgage product you take out, the mortgage insurance can increase along side this.

Can Mortgage Offers be extended?

It is possible to extend a Mortgage Offer. This is done by speaking to your mortgage broker, who can then liaise with the lender to request an extension for you. A valid reason may be required to extend the Mortgage Offer. If this is not possible, it would require a new affordability assessment and accepting a new Mortgage Offer.

How are mortgage repayments calculated?

Interest rates on mortgage repayments are calculated daily. They are then deducted from the monthly repayments to determine the payment you will make.

require a new affordability assessment and accepting a new Mortgage Offer.

Can mortgage payments increase?
  • Mortgage payments can increase. If you’re on a variable rate or a tracker rate, or the Bank of England base rate goes up, then potentially your monthly repayments would increase as a result.
Can Mortgage Rates be negotiated?

No, unfortunately when it comes to Mortgage Rates, they are non-negotiable and dependent on the lender.

Can you pay your mortgage by credit card?

No, you cannot make your mortgage payments by credit card.

Understanding How Mortgages work

How do mortgage rates work?

Mortgage rates are based on the type of product that you’ve taken out, these are set by the lender and your mortgage broker will explain this to you. If it’s a fixed rate mortgage, the interest rate will be fixed for a certain length of time, meaning your monthly repayments will never change. If it’s a tracker rate Mortgage you’ve taken out, your rate will follow the Bank of England base rates. If the base rate goes up, your tracker rate repayment amounts will go up. If the base rate were to go down, your tracker rate repayment amounts will go down.

How does remortgaging work?

When you take out your original mortgage product with the lender. After a certain length of time it will come off that mortgage product, and go on to the lender’s variable rate. This is often quite a lot higher than the initial mortgage you’ve taken out. The idea of a remortgage is for the broker to search the whole market and get you a new deal. This could either be with a new lender, or with the existing lender, depending on what product is best for your needs.

How to know what mortgage I can get?

By sitting down with a mortgage broker. You’ll be able to go through an affordability assessment to find out how much you could borrow. They will explain the process to you, what documentation you will need, and give you the best advice on your mortgage requirements.

How will I know what cover works best for me?
  • That will be recommended to you by your mortgage adviser based on their assessment. Protection will vary in each individual circumstance and it’s important to make sure you are getting the best advice on this.
Should I get a mortgage or rent?

When it comes to considering getting a mortgage or renting, there are pros and cons to both. Buying and Renting comes down to the individual client’s circumstances.

What can I do when my mortgage payments are too high?

If your mortgage payments are too high, the best thing to do is seek out advice from an Independent Mortgage Broker and get independent mortgage advice. They can guide you through the best and available options that you have.

What happens when a mortgage payment is considered late?

Depending on the circumstances, it would be down to the lender’s discretion as to how a late payment is handled. If a payment is missed, this can then cause future problems with gaining a mortgage if it has affected your credit score.

When is mortgage insurance required?

If you’re buying a house, you’re going to need building insurance. This needs to be put in place before you exchange contracts. With regards to other forms of protection; such as life insurance or critical illness cover, we advise putting these in place before you receive the keys to your new property. By speaking with a mortgage advisor they can guide you on what will be best for your individual needs.

The Role of a Mortgage Adviser

What is a Mortgage Adviser?

A Mortgage Adviser is someone who is qualified to give you advice on Mortgages.

Are Mortgage Advisers Regulated?

Yes, Mortgage Advisers are regulated by the FCA (Financial Conduct Authority). The FCA is a financial regulatory body in the United Kingdom.

What is the goal of using a Mortgage Adviser?

The purpose of using a Mortgage Adviser is to make sure you’re getting the best advice possible with regards to taking out a mortgage. Their goal is to advise you throughout the mortgage process to give you the best suitable advice for your needs. They also take the pressure out of you having to do it, as they will be able to research the market and make the process as smooth as possible for you.

What are the duties of a Mortgage Adviser?

The duties of a Mortgage Adviser are to make sure they understand their client’s needs. This is to make sure they can make an appropriate recommendation when it comes to their Mortgage to give the client the best and most suitable advice.

Where to start with a mortgage?

The best thing to do is sit down with an independent mortgage broker. They can explain how affordability works, the process and what documentation will be expected of you. They can also go through an affordability assessment with you and give you the documentation and information you need to start.

Mortgage Jargon

What is an APR?

APR stands for Annual Percentage Rate, which is the amount charged per year for the amount borrowed, including any fees.

What are Arrears?

If you are in arrears with your mortgage, it means you have missed at least one payment. Continually falling into arrears can put you at risk of losing your home. You can also get arrears on personal loans and credit cards, as missing payments on this can also affect your credit report.

What is an Arrangement fee?

An arrangement fee is the cost of setting up your mortgage and it may include things such as booking application fees. This Is payable to the lender and will vary depending on the product that is offered. Most lenders have multiple products with and without arrangement fees, and depending on your individual circumstances will determine which product is best for you

What is an Early Repayment Charge (ERC)?

Sometimes a mortgage deal sets an early repayment charge if you pay some or all of your mortgage off ahead of the end of your mortgage term, or if you transfer to another rate before the end of the product period. Speak to an adviser or broker for guidance on whether or not this will affect you.

What is an overpayment?

An overpayment is any payment toward your mortgage that you make over the agreed amount. Generally, lenders allow up to 10% overpayments per year on your mortgage without resulting in Early Repayment Charges, even if you are tied into a deal. Overpaying can result in paying less interest overall and shortening the time it takes to clear the full mortgage sum. Speak to your mortgage adviser to make sure you understand this before taking action.

What is an Interest-only mortgage?

An interest-only mortgage allows the borrower to only pay the interest portion of the sum total borrowed. However, this means both that your mortgage balance doesn’t reduce and that you will not be building equity in the property

What is an Offset mortgage?

This type of mortgage allows borrowers to use their savings to ‘offset’ their mortgage debt. For example, if you have borrowed £100,000 through an offset mortgage and you have £30,000 in a dedicated savings account, you will only have to pay interest on £70,000 of the mortgage.

What is a Mortgage term?

The mortgage term is the length of time in which you agree to pay off the mortgage. Generally, this is 25 years, but it can be longer or shorter than this.

What is a Guarantor?

A guarantor is a person – such as a parent – who legally agrees to make the mortgage payments if the borrower finds themselves unable or unwilling to meet repayments.

What is a Higher Lending Charge?

This is a fee that is occasionally charged by lenders if you borrow a particularly high percentage of the value of the house (usually 90% or higher). These fees are less common than they once were.

What is a Loan to value (LTV)?

The LTV, usually expressed as a percentage, is the proportion of the property price that you borrow when you get a mortgage. If, for example, the property is valued at £100,000 and you borrow £80,000, this is an LTV of 80%.

See What Our Customers Say

I was recommended Hobbs House by an estate agent. I'm exceeding glad they recommended them. Ollie was extremely knowledgeable and took the time to explain anything we weren't sure about. He helped us find the best mortgage for our situation and gave advice and support when needed. The icing on the cake, Hobbs House collect their fee from the mortgage provider, so you aren't left out of pocket! I would highly recommend them and will be contacting them when the term on my current mortgage is up.

Kate Davidson
3 weeks ago

We used Oliver to arrange a mortgage recently. We found him very helpful to provide advice, answer all our questions, and complete the application. Would happily use again and recommend to others.

Peter Crudge
4 weeks ago

Oliver from Hobbs House Mortgages was excellent at dealing with queries in a timely manner and was persistent in finding solutions when we faced problems in the mortgage application process. Will certainly be using Hobbs House Mortgages again in the future.

George Dent
a month ago

Oliver has been a great help throughout the process and his knowledge of the industry is brilliant. He took the time to explain and communicated excellently throughout. Would highly recommend.

Kelly Freegard
a month ago

Great service from Hobbs House Mortgages, communication is good and Oliver explains everything really clearly, what are your best options and why. Everything was sorted really quickly. Had a mortgage offer sorted before the estate agent had even lifted a finger! Highly recommended, thank you!

Gordon Lewis
a month ago

Very helpful throughout the whole process and happy to answer any answers that I had. Highly recommended

Rhiannon Lewis
a month ago

shruti narshi
a month ago

Oliver was recommended to us via family. He is very professional, knowledgeable and communication throughout the process was very fluid. Oliver was also very flexible with us and was happy to book in an evening call to go through our options. We highly recommend Hobbs House Mortgages to anyone who is in the process of purchasing a property.

Lillie Boswell
a month ago

Oliver's service throughout our whole mortgage application process has been fantastic.He was also very responsive throughout everything so the process moved along very quickly.would highly recommend to anyone!

Honestly Oliver has helped so much during the process of me buying a house and getting a mortgage, super easy to talk to and made every effort to make sure I understood all options on the market to give me the clearest vision to pick which mortgage to go with

Gemma Drake
4 months ago

I could not recommend Ollie enough!! As a first time buyer, the process of buying and getting a mortgage can be daunting. Right from the start Ollie's professional, clear and honest advice has been a breath of fresh air in helping me on the journey to get a mortgage.

Rebecca Porthouse
10 months ago

Ollie has been fantastic for us and fantastic is an understatement. As first time buyers we had absolutely no idea on how to go about things. Ollie came in highly recommended via a friend and we decided to reach out to him to see how we would het on. From the get go he was patient with us, answered our questions (even the silly ones!) provided advice and support and got us through the whole process from A-Z with minimal effort from our side. He worked around our schedules and always responded in a timely manner. Professional, reliable and friendly. And I will be recommending him to my friends and family as he had been outstanding in his service to us. Thank you Ollie for helping us finally to own our own home.

ella giddings
9 months ago

Couldn’t recommend Ollie enough! He’s helped us get our first mortgage and has been there every step of the way. He was very flexible and was able to work around us. He had a great mortgage offers and helped us find life and house insurance to go with it! Would defiantly recommend such a friendly, helpful and reliable person!

Mark Thomas
8 months ago

Oliver at Hobbs House is fantastic. I had a brief call with him one evening and he was able to provide me with an agreement in principle that evening for a potential house purchase. Since then, we've found a house and he's arranged the mortgage. Oliver explains everything really simply and is fabulous to work with. Would definitely recommend.

Jason Peel
10 months ago

Oliver's service throughout our whole mortgage application process has been fantastic - very knowledgeable and took the time to understand our specific situation. He was also very responsive throughout everything so the process moved along very smoothly. We're very happy with how everything turned out - would highly recommend to anyone!

David Saunders
5 months ago

We used Hobbs House for the second time having been impressed previously with the service from Oliver Bailey.Super service again and would highly recommend the Company and Oliver in particular.

william snell
8 months ago

We couldn’t have been happier with Oliver at Hobbs House. He has been helpful, informative and has managed to secure us an excellent mortgage. We highly recommend using his services and shall be returning to him for the purchase of our next property. 5 star service.

Toby Naylor
4 months ago

Brilliant service. I was really worried about moving given the current economic situation but the team guided me through the process and gave me the advice I needed to find and secure a mortgage, with very friendly and efficient service throughout.

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