Novara Row Mortgages : FAQ'S

To help you to find your way around the vast and often confusing mortgage market, Novara Row Mortgages have put together a selection of frequently asked mortgage questions (FAQ's).

What is a mortgage?

A mortgage is a form of loan, which is taken out against property. The definition of property may include a house, a flat, or an apartment, although mortgages cannot be taken out against any other assets such as a vehicle, stocks and shares, or other investments. A mortgage can also be taken out against an office, a shop or a factory (this is known as a commercial mortgage), or against a property which the owner intends to rent out to other tenants (buy-to-let mortgage).

The origins of the word mortgage come from the ancient French words mort (death), and gage (a pledge). However,  taking out a mortgage did not mean that the mortgagee expected to die if he did not pay back the mortgage; it merely meant that his entitlement to the mortgaged property would cease if he fell behind on his payments.

What is a re-mortgage?

This is when the terms of the original mortgage are renegotiated, and usually means that the borrower increases the amount that they are borrowing, which is often possible due to a rise in the value of the property. A remortgage may allow the homeowner to repay other debts such as personal loans or credit cards, or it may be a way of paying for home improvements such as a conservatory a loft conversion. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Remortgaging may involve getting a better deal from your current lender, or it may mean changing lenders if a rival is offering a more competitive rate. The remortgage usually will involve a fresh survey of the property taking place, and an updated valuation of the property, which will take into account any changes in value. 

How much can I borrow?

The maximum loan available will be determined by either the income multiples that the lender will use, or by an affordability calculation.  If you would like an indication of how much you would be likely to qualify for, then please call 020 7359 0033 and speak to one of our advisers now.

How does my credit rating effect the amount of money I can borrow?

Different lenders would use different criteria in order to determine how much money they are prepared to release for borrowing. Factors will include your credit history, how long you have stayed with your employer, or at your current address; your income, your job type, your age and relationship status.

How many years can I take a mortgage out over?

While some lenders set their maximum term at the traditional 25 years, there are lenders that now offer mortgages over 30,35 and 40 years.

Can I get a mortgage even with my poor credit history?

There are many lenders that will assist people who have had problems with credit payments in the past. The interest rates charged will be slightly higher than those offered by high street lenders. However, our job here at Novara Row Mortgages is to ensure that we find you the cheapest possible deal that is available to you.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. 

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be 1.5% of the loan value.  Some mortgage and insurance products are not regulated by the FSA.