Frequently Asked Questions

As of November 2023, a Residential Mortgage requires a minimum deposit of 10% if you’ve previously been a Homeowner. However, if you are a First Time Buyer, we can now get you a 100% Mortgage if you’ve rented for at least 12 months, so NO deposit is required in this instance.

As of November 2023, a Buy to Let Mortgage requires a minimum of 15% deposit.

As of November 2023, for a Commercial Mortgage, a deposit of between 20% – 40% is typically required, with the average being around 30%. The deposit amount usually varies depending on the lender and the interest rate being offered.

It can sometimes be available to get 100% Bridging Loan (no deposit needed) although this is uncommon and rare and requires other assets / collateral to exist in the background.

Use our Commerical Mortgage Calculator to get an indication of what the monthly repayments will be on a Commercial Mortgage.

The minimum deposit you would need to put down for a Commercial Mortgage would be in the region of 25% to 30% – the more deposit you have, the greater choice of Lenders you will have available and also ultimately the interest rate being offered will be lower.

Use our Commerical Mortgage Calculator to get an indication of what the monthly repayments will be on a Commercial Mortgage.

Yes. As a rule Commercial Mortgage interest rates do tend to be higher than standard mortgages for Residential and Buy to Let Properties. The reason for this is largely due to the higher risks that are associated with commercial properties.

Use our Commerical Mortgage Calculator to get an indication of what the monthly repayments will be on a Commercial Mortgage.

As of November 2023, Bridging Loans typically require a deposit of between 20% – 40% with the average being around 25%. The deposit amount usually varies depending on the Bridging lender and the interest rate being offered.

In some instances, 100% Bridging Loan is possible (i.e. no deposit required) although for this to apply, other assets / collateral must exist and be used in the background in order to give the bridging lender sufficient security.

Use our Bridging Loan Calculator to get an indication of what the monthly repayments will be on a Bridging Loan today.

Yes, although in certain circumstances only. In order to qualify for 100% Bridging Loan, other assets / collateral must exist in the background and be used in order to give the lender sufficient security over the loan.

Use our Bridging Loan Calculator to get an indication of what the monthly repayments will be on a Bridging Loan today.

Yes. Mortgage Brokers are truly independent and as such, do not have any affiliation with an individual Lender or product.

This allows Mortgage Brokers  to understand your scenario perfectly and use their knowledge and access to the lenders in the market to get you the best deal that fits best for you financially and also crucially will complete – as a lot of lenders’ products might look good on paper, but can often not result in an Offer being made due to the Underwriting process involved.

A Mortgage Broker is someone you can build a relationship with, that will help you in your property journey. Whether that be your first home, a buy to let, a commercial property or any other type of property finance. We will understand your needs and wants, and use our extensive knowledge and experience to do what’s best for you. We do not work for any Lender or Bank and do our job truly without any bias. This means you can rest assured that you have someone who knows what they are doing on your side. This will most likely save you considerable time and money in the long run.

A Mortgage Broker is able to search across a whole range of lenders in order to find the best solution and rates which meet the clients exact needs. Whereas, if you used a High Street Bank or Building Society, you will only be offered their limited range products and the client would be unable to see if they are getting the best outcome.

Working with a whole of market Mortgage Broker in particular, who has access to literally every single Lender and deal in the market, offers clients the most comprehensive range of options and rates and is therefore likely to present the client with potentially cheaper deals and rates and higher LTVs.

A whole of market Mortgage Broker is one who has access to ALL Mortgage lenders and therefore the “whole of market”. In order to be a whole of market broker, the broker firm must be directly Regulated & Authorised by the Financial Conduct Authority (FCA) which is there to protect the interests of consumers and provide peace-of-mind.

Whole of market Mortgage Brokers have major benefits over other mortgage brokers who are “paneled” – which means they are restricted to a limited number of lenders on their “panel”. The number of lenders a paneled broker works with can often be as low as 10, especially for brokers within Estate Agency firms etc – so naturally the fewer the lenders the broker works with, the fewer deals they have access to.

Always ask your Mortgage Broker if they are paneled or whole of market – if they are paneled then ask how many lenders they work with. Whole of market Mortgage Brokers genuinely have access to every single lender and deal available in the market – so they really can offer the best deals and rates which exist and also help clients with all different scenarios, including complex cases and clients with bad credit etc.

Yes. We provide our clients with a totally FREE whole of market search, quote and advice, which is and without any obligation. Crucially, NO credit searches are done at this stage either.

Only if you wished to proceed with our free mortgage quote and proposal and have seen how we operate, and are comfortable with the service we provide and the products offered are fees then incurred. This allows us to show you as a whole of market broker that we can get you the best deal in a timely manner and give you the service that warrants our highly competitive fee.

Yes. A Bank will only have one set of products to offer you – their own! It is within the Banks’ interest to make sure you go for theirs, regardless of whether or not there are better options on the market that could save you money, or suit your circumstances better.

Conversely, a Broker has access to multiple Lenders and therefore can offer you a much wider range of options and most likely better rates and terms than just one Lender ever could. The number of Lenders a Broker has access to is equally as important – with a whole of market being the widest range of options as they work with ALL Lenders.

Being a whole of market broker, we will search across the whole mortgage market for our clients to search and compare in one go, which will undoubtedly save our clients considerable time and most likely to also save them money, as opposed to them having to speak every bank individually.

Yes. For most products we offer, it is necessary for us to charge minimal fees in order to provide the very high level of Customer Service for our clients as this is simply not possible otherwise. Note – fees only apply once a client has accepted our free quotation following a whole of market search and advice being provided as to best options available.

We are totally transparent with our fees and all clients are notified of our fees upfront in our written quotation so there are never any nasty surprises! The fees we charge are to pay for all the work that we do in chasing up the Lender, Solicitors on a regular basis to make sure they progress the application as swiftly as possible and also crucially, keeping our clients updated every step of the way!

While we do charge them for most products we provide, our fees are extremely competitive in the market and very fair for the service we provide and there are many brokerages that charge much higher fees than us. Our business model is purely focused on our clients being central to everything we do and we need to service them with the best Mortgage Advisors.

If you are considering using a Fee Free Broker to save money, then we recommend checking what level of Customer Service you can expect to receive from the Broker upfront to set clear expectations before proceeding. We consistently find our clients do not quiver over our minimal fees once they’ve seen the service we deliver and how it compares to Fee Free Brokers – there is always a reason why things are free!

Typically lenders will lend on a multiple of 4.5x the applicants combined income. E.g If you have a gross income of £35,000 per annum, you would be able to get a mortgage of £157,500 minus any other financial commitments you have in place which will form part of the lenders’ Affordability calculations.

The basic requirements for a UK Mortgage are:

• Over 18 years of age.
• A regular income / salary,
• A credit footprint (e.g bank account, credit history etc)
• A deposit to put down (if a previous Homeowner then deposit needs to be a minimum of 10%, if a First Time Buyer, then some Lenders will now accept zero deposit, otherwise more options exist with 5% deposit.
• Funds to pay for a solicitor for conveyancing – usually approx £750 – £1,o00 (we are able to recommend firms to our clients whom we work with regularly.)
• Funds for Stamp Duty (where applicable)
• UK Citizen or Indefinite Leave to Remain.

Yes. If you have an income of £25k a year, then you could potentially get a mortgage of £112,500 as lenders will typically lend up to 4.5x your annual income. However, you would still need to have a suitable deposit in place (unless a First Time Buyer) and also depends on your other financial commitments and credit history.

For a £250k Mortgage UK you would typically need an income of circa £55k as UK Lenders will usually lend 4.5x your annual income.

For a £250k Mortgage UK you would typically need an income of circa £55k as UK Lenders will usually lend 4.5x your annual income.

For a £300k Mortgage you would typically need a combined income of circa £66k as Lenders will usually lend 4.5x your annual income.

Yes. You can typically secure a 30 year Mortgage at 45 in the UK although different lenders have different requirements. In the event the mortgage extends beyond Retirement age, then lenders would typically need to see evidenced income post retirement to ensure you meet affordability requirements.

In order afford a £400k UK house, the minimum annual combined income of all applicants would need would be typically £88k, although in the event of a high deposit, this could be lower. Additionally, any existing financial commitments would also be taken into consideration as part of the affordability calculations.

In order to afford a £500k UK house, the minimum annual combined income of all applicants would need would be typically £111k, although in the event of a high deposit, this could be lower. Additionally, any existing financial commitments would also be taken into consideration as part of the affordability calculations.

In order to get a £800k UK house , the minimum annual combined income of all applicants would need would be typically be between £160k – £177k as at this level, lenders often are able to lend up to 5x income. Additionally, any existing financial commitments would also be taken into consideration as part of the affordability calculations.

Yes. We are a whole of market Mortgage Broker and we have a Specialist Expat / Foreign National Division which works with clients for all over the World – Expat Mortgages UK.

We work with all Expat and Foreign National Lenders in the UK so we’re confident in being able to source our clients the best rates and deals which exist for their particular circumstances.

Yes. A Non UK Resident can get a UK Mortgage without being a UK Citizen and you do not need to have a UK Passport either.

As a whole of market Mortgage Broker and with a Specialist Expat & Foreign National Division, we work with ALL UK Mortgage Lenders and work with clients from all around the world so are confident we can find you the best options available for all complex, no matter how complex.

The country that you live in can impact your application, as UK Lenders wish to see that your application is coming from a country that is financially stable.  Lenders have lists of countries that they will lend to, and a handful of lenders may consider your application wherever you live.

A “haircut” may also be required on your income to cover foreign exchange fluctuations and this is usually 20%.  It is always highly recommend to have a UK bank account which Lenders prefer to see.  Finally, if you are Self-employed, your Accountant may need to be internationally recognised.

Most Lenders will require a minimum deposit of at least 20% to 25%. However, a handful of Lenders could specify a minimum deposit of as low as 10% and you will need to provide proof of where the deposit came from.

Yes. You maybe able to get a UK Mortgage even if you do not have Indefinite Leave to Remain. However, applicant with Indefinite Leave to Remain or a Spousal Visa tend to have a wider choice of options than those without.

We work with ALL UK Mortgage Lenders and work with clients from all around the world so are confident we can find you the best options available for all complex, no matter how complex.

A high credit score will certainly improve your chances of accepted for a UK Mortgage and also give you access to much better lender interest rates than someone with a lower credit score &/or bad credit history.

The minimum period some lenders will consider is twelve months of having been a UK Resident, however the majority of lenders require two years in order for the client to have built up address history and a suitable credit footprint.

No, unfortunately not. UK Lenders would like the client to have a credit footprint at your current address and have lived in the UK for at least 12 months.

Yes. You can get a UK Mortgage without being a UK Citizen and you do not need to have a UK Passport either. As a whole of market Mortgage Broker and with a Specialist Expat & Foreign National Division, we work with ALL UK Mortgage Lenders and work with clients from all around the world so are confident we can find you the best options available for all complex, no matter how complex.

Yes. Foreigners are able to obtain a mortgage in the UK and if applicant doesn’t have “Indefinite Leave to Remain” then most lenders will restrict the Loan to Value (LTV) to 75%. However, there are some  Lenders available to clients who have been living in UK for 12 months who will lend up to 90% LTV, although the interest rates and fees will usually be higher.

Yes. Clients with a bad credit history, which can include things such as missed payments and CCJs (County Court Judgements) are still able to secure a new mortgage or remortgage, however the costs will be higher – in terms of the interest rate applicable and also possibly any product fees.

As a whole of market Mortgage Broker, we work with clients with all types of financial situations, good and bad, as we work with ALL UK Mortgage Lenders.

It is impossible to predict the future, however Mortgage Analysts are forecasting that the Bank of England Base Rate has now reached its peak of 5.25% in August 2023 and is likely to remain at that level leading into Q1 2024 at least.

However, Mortgage Lenders always analyse long term rates when setting their fixed rates and as such have already began dropping their fixed deals in Q3 and Q4 of 2023. This trend is likely to continue as Mortgage Lenders compete more aggressively for business in 2024 to the benefit of Homeowners with rates predicted to become even more competitive and lower in 2024.

Fee Free Mortgage Brokers do not charge their clients any fees, as they receive a commission from the Mortgage Lenders.

There are a lot of Fee Free Mortgage Brokers in the UK (approximately 1/3) although over recent years the number has significantly reduced due to the huge amount of work involved in processing mortgage applications, especially post Covid this has increased substantially.

When choosing a Mortgage Broker, always consider what level of Customer Service you wish to receive and how you value your time, since Fee Free Mortgage Brokers typically are not able to provide the same level of service to their customers as those Brokers which charge a fee – for basic reason of common sense due to the costs involved in being able to do so.

If you wish to have a Dedicated Case Manager and Mortgage Advisor with their own direct dial phone number and email address and be able to speak with them instantly without having to wait up to 45 minutes in a call centre queue, then we recommend using a Mortgage Broker which charges a fee, such as Commercial Finance Network.

Indeed, a large number of clients end up going with a Broker which charges a fee after all the stress and frustration of first trying a Fee Free Broker and getting nowhere with their application due to lack of anybody chasing up the Lender and Solicitors on a regular basis as needed.

A Commercial Mortgage is a secured loan against a property that is used for business / commercial purposes. This can be premises such as an office, shop, takeaway, pub, or newsagents etc or any other property hosting a business. Commercial Mortgages differ from Semi-Commercial Mortgages are typically mixed use – i.e. Commercial and Residential.

Loan to Values (LTVs) for Commercial Mortgages are typically lower for these type of mortgages than Residential and Buy to Let Mortgages.

A Semi-Commercial Mortgage is a secured loan against a property that is used for a mix of both Commercial and Residential purposes. A typical example of when a Semi-Commercial Mortgage would apply would be a retail unit / restaurant on the ground floor with flats above on the first floor etc.

Loan to Values (LTVs) for Semi-Commercial Mortgages are typically lower than for Residential and Buy to Let Mortgages.

When considering Semi-Commercial property, if at least 40% of the building is residential use then the property will be classed as “Semi-Commercial”.  When determining how much a Lender will loan on a Semi-Commercial property, as well as value of the property etc, the lender will look at factors such as the term remaining on the lease, the rental income for both the commercial element and the residential element and overall the maximum Loan to Value (LTV) will be 75%.

For Semi-Commercial Mortgages, you are able to take the Loan to Value (LTV) up to 75% which would be the maximum you are able to borrow, so you would need a minimum of 25% deposit.

The value of the Semi-Commercial property will be determined by the Surveyor, who will consider the location of the property along with other factors such as local demand and the type/use of the tenant in the commercial unit.

No. You are unable to use a Residential Mortgage for a Commercial property as they are very different things and Lenders have specific requirements tailored for Commercial properties. If you convert a residential property into a Commercial property, then you would need to remortgage your property onto a Commercial Mortgage else you would be breaking the terms of your Residential Mortgage and it could be called in at any time by the Lender.

Stamp Duty Land Tax (SDLT) is a tax that must be paid when purchasing a property or land. SDLT  is calculated as a percentage of the property price. Stamp Duty only applies in England and Northern Ireland. In Scotland Stamp Duty is called “Land and Buildings Transaction Tax” and in Wales it is known as “Land Transaction Tax”.

The amount of Stamp Duty you need to pay varies depending on the particular scenario that applies. If it is your only property then you only have to pay Stamp Duty Land Tax (SDLT) it if the value is over £250,000 and the rate that would apply for that is 5% up to £925,000. The next rate will be 10% up to £1,5000,00. The final rate that applies is 12% over that amount.

Note, if you own a second property you will need to add an additional rate of 3% to all the previously determined rates.

Being a Directly Authorised FCA brokerage means that the broker firm has firstly been Approved by the Financial Conduct Authority (FCA) and secondly the firm holds the power over how their company is run. As the Brokerage doesn’t operate through a network, they therefore have more control and have access to ALL Lenders, rather than being restricted to only those Lenders who are on the networks’ Panel.

Being Directly Authorised is a very good thing since autonomy breeds the freedom to innovate and change with the market quickly in order to offer the best choice and range of products and services to clients. Crucially also, customers are fully protected and have full recourse through the FCA.

Commercial finance refers to the financial activities and services provided to businesses, corporations and commercial enterprises to support their growth, operations and investment needs. Commercial Finance involves the management of financial resources, such as working capital, funds and assets to optimise profitability.

Commercial finance encompasses various financial products and services, including loans, asset-based lending, lines of credit, trade financing, equipment financing, invoice factoring and leasing. These commercial services are typically offered by lenders such as banks and specialist commercial finance companies.

The primary goal of commercial finance is to provide businesses with the necessary capital and financial solutions to meet both their short and long term funding requirements. Commercial finance aids businesses secure funding for purchasing inventory, expanding operations, investing in new equipment or technologies, managing cash flow and funding mergers and acquisitions.

Commercial finance also involves assessing the creditworthiness and financial viability of businesses through financial analysis and due diligence. Lenders and financiers evaluate factors such as the business’s financial statements, cash flow projections, credit history, collateral, and market conditions to determine the level of risk and determine the terms and conditions of the financing arrangement.

In summary, commercial finance plays a crucial role in facilitating business growth, supporting entrepreneurship and driving economic growth by providing businesses with the necessary financial resources and expertise to prosper.

Commercial finance works by providing businesses with the necessary capital and financial solutions to meet their funding requirements and support their operations, growth, and investment needs.

Typically, an outline of the steps involved in the commercial finance process is as follows:

1. Identifying funding needs
   Businesses assess their financial needs, such as purchasing inventory, expanding operations, investing in equipment or technologies, managing cash flow, or funding mergers and acquisitions.
2. Choosing the right financing option
   Businesses evaluate different commercial financing options available to them, such as loans, trade financing, lines of credit, asset-based lending, equipment financing, invoice factoring, or financial leasing. They consider factors like interest rates, repayment terms, collateral requirements and the suitability of the financing option for their specific needs.
3. Application and evaluation
   Businesses apply for commercial financing from banks, financial institutions, or specialist commercial finance companies. Lenders evaluate the business’s creditworthiness and financial viability by assessing factors like financial statements, cash flow projections, credit history, collateral, and market conditions. This evaluation helps determine the level of risk associated with providing the financing and the terms and conditions of the financing arrangement.
4. Approval and disbursement
   Once the business’s application is approved, the lender provides the agreed-upon financing amount. This can be in the form of a lump sum loan, a credit line, or other financing structures. The funds are then disbursed to the business, either as a direct deposit or through other agreed-upon methods.
5. Repayment
   The business is responsible for repaying the borrowed funds according to the agreed terms and conditions specified with the lender. This typically includes making regular payments, including capital and interest over a specified period. The repayment schedule can vary based on the type of financing and the agreement between the business and the lender.
6. Ongoing relationship
   Commercial finance typically involves an ongoing relationship between the business and the lender. The business may need additional financing in the future and the lender may provide ongoing support and financial services to the business as its needs evolve.

In summary, commercial finance plays a vital role in facilitating business expansion, supporting entrepreneurship and driving business growth and ongoing development.

Commercial Finance UK refers to the financial activities and services provided to businesses and commercial enterprises in the United Kingdom. It encompasses various financial products and solutions tailored to meet the funding needs and requirements of businesses operating in the UK.

UK Commercial Finance includes a wide range of financing options, such as equipment finance, invoice factoring, loans, trade finance, lines of credit, asset-based lending and financial leasing. These commercial financing options are typically offered by UK banks, financial institutions and specialist Commercial Finance companies.

The purpose of Commercial Finance in the UK is to provide businesses with the necessary capital and financial support to meet their short-term and long-term funding requirements. It helps businesses in the UK cover expenses such as purchasing inventory, expanding operations, investing in new equipment or technologies, managing cash flow, and funding mergers and acquisitions.

Commercial Finance UK is essential for businesses of all sizes and industries, as it enables them to access the capital needed to grow and thrive in the UK market. It plays a crucial role in supporting entrepreneurship, facilitating business expansion and driving economic development and investment for UK businesses.