faq | R3 Mortgages
Residential & Commercial Finance Specialists

faq

I am a contractor. How will the lenders view my income?

There are lenders who will deduce your salary for affordability based on the day rate of the contract. This depends on a number of factors including your work experience, contracting history and the remaining time left on your contract.

Can I get a mortgage with a parent but not have them on the title deeds?

Yes, this is called joint borrower sole proprietor. The lender will take into account both of your incomes and expenditure and may be flexible with the term. The main advantage being that only one applicant (preferably the first time buyer) is registered as the property owner.

Live / Work units – Can I get a mortgage on a new build live/work unit?

Yes, there are few lenders who will consider this. The floor space for the work element generally needs to be under 40% of the total floor space. In addition, there may be considerations regarding access and the number of visitors expected.

I have missed mortgage payments in the past, will I automatically be declined?

There are lenders that will accept those who have missed payments in the past. The rates and the associated fees will most likely be higher and the number of lenders who will consider this are extremely limited.

My income is based of basic plus commission and I have a long track record of receiving this. Can my total salary be considered?

Many lenders will take 50%-60% of commission or bonuses depending on the track record. However, there are some lenders who may take a greater proportion possibly going up to 100%. These are assessed on a case by case basis.

Will lenders accept properties with short leases?

Yes. There are lenders who will go as low as 25-30 years remaining on the lease at the end of the mortgage term.

I have moved from a sole trader to a limited company following the advice of my accountant. Can I get a mortgage?

There are lenders who will consider this on a case by case basis.

I have a zero hours contract, can I still get a mortgage?

Yes, there are a limited number of lenders who will accept zero hours contracts

I am looking to purchase a HMO (house of multiple occupancy). Can you assist?

There are a limited number of lenders who will finance a HMO. Most would like the applicant to have been a landlord for at least 3 years however there are lenders with no such requirement.

I need short term financing for an auction purchase. Can you assist?

We can assist with arranging bridging loans for short term financing.

I am a limited company director. Will profit retained in my company be considered for my application as well as my salary & dividends?

There are a limited number of lenders who will consider this scenario on a case by case basis.

My income is made up of basic salary and commission/bonuses? Will the lenders consider this given it fluctuates and is not guaranteed?

There are lenders who will accept 50% of commission/bonuses in their affordability calculations depending on the track record. A very small number of lenders may consider more but this is assessed on a case by case basis.

How do you source mortgage deals?

After we have ascertained your current financial position, aims and requirements, we use sophisticated mortgage sourcing software as well as our market knowledge to select the right deal for our clients.

I want to release some equity from my current property to purchase another. Is this possible?

This is possible for both residential and buy to let properties depending on your circumstances.

I have had a default registered against me from my mobile phone provider. Can I still get a mortgage?

There are lenders who will ignore issues resulting from mobile phone companies. These are considered on a case by case basis.

Can I make overpayments on my mortgage?

This depends on the terms of your mortgage product. If you already have a mortgage, please refer to your key features illustration or mortgage offer.

Is it possible to be on my child’s mortgage application to assist with affordability but not be named on the title deed?

There are lenders who will consider such applications on a case by case basis.

Will lenders consider flats above commercial premises?

Ultimately yes but it depends on a number of factors. Lenders place emphasis on the valuers comments regarding suitability and resaleability. Mortgages for flats above restaurants/takeaways/pubs/bars are much harder to place.

Should I consider buying future buy to lets through a limited company?

The proposed tax changes has resulted in a number of high rate and additional rate tax payers considering this as an option. there are advantages for buying property through this vehicle, you should consult your account or tax professional for guidance in this area.

I am an expat working or a large multi national company overseas. Can I still get a mortgage?

There are a limited number of UK and offshore lenders who will consider such cases for employed expats working for large multi national corporations. However, there may be restriction on certain countries. In addition, you should consult a tax advisor to consider the implications.

I have an unencumbered properties. Can I borrow against it?

For residential and buy to let properties that have no outstanding borrowing, there are lenders who will consider lending. Some may stipulate a minimum period of ownership and it may also be possible to benefit from remortgage packages (i.e free valuation and free legals).

Can I get a mortgage if I only have 1 full year of accounts?

There are a very limited number of lenders who will lend to those with 1 year of accounts. One of the main things the lender will look at is the applicants background and their experience in their current field.

I am looking to purchase property through a limited company following my accountants advice. Can I still get a buy to let mortgage?

Yes, there are a limited number of lenders that will lend to limited companies. However, with the recent tax changes, we expect the number of lenders in this space to increase.

I am looking to remortgage, will I have to pay for a valuation and the necessary legal costs to transfer lender?

Most lenders have remortgage packages that will include free legals and valuation (terms and conditions will apply).

Can I remortgage and release further funds to consolidate my debts?

There are lenders who will allow personal debt consolidation. However, careful consideration needs to be given when securing unsecured debt.

I want to purchase a second residential property, is this possible?

There are lenders who will allow you to purchase additional residential property. Ultimately, they will look at your income and expenditure and how you can maintain the new financial commitment in conjunction with your current ones.

Will lenders accept family gifted deposits?

Generally yes but lenders may vary as to who is acceptable. Usually, parents, siblings and grandparents are acceptable sources of family gifted deposits.

Are there lenders who will consider gifted equity when buying from a family member?

Yes, there are a limited number of lenders who will accept this.

What costs should I consider when buying a property?

The list below illustrates some main costs associated with property purchases:-

Legal/ conveyancing costs
Stamp duty
Valuation / survey fees
Removal costs
Estate agents / Lettings agents costs

Are residential interest only mortgage still available?

Yes, but the lenders are few and far between and may require a minimum level of equity to be in the property. Lenders will also look to see what the credible repayment strategy will be which could include, downsizing, pensions, investments, etc.

I am a first time landlord, can I get a buy to let mortgage?

Yes, there are lenders who will grant buy to let mortgages to first time landlords.

Can you assist with Help to buy cases?

Yes. We have access to lenders who will consider cases for Help to Buy equity loan and mortgage guarantee.

How much can I borrow on a buy to let?

Ultimately, it depends on the rental income .

Do I need a minimum income for a buy to let mortgage.

No. There are lenders who have no minimum income requirement. However, to get the best deals, applicants usually need to earn at least £25,000.