Frequently asked questions about our service

So how do you get paid?

Once your mortgage has commenced we will be paid a commision by the mortgage lender. It varies slightly from lender, but a general “rule of thumb” is that we’ll receive 0.32% – 0.4% of the amount that you borrow.

Alternatively, if you’d really prefer to pay us a fee, then we’ll charge you 1% of the amount that you borrow, and we’ll refund you with what we receive from the lender at the end of the process.

Why should I use a mortgage broker rather than a comparison website?

Good question. In short, lending criteria has changed beyond all recognition in recent years and a broker with many years’ experience will know instantly which lenders will be available to you and which will not. Yes, the interest rate is important, but have you considered lenders’ fees, how much the lender will permit you to borrow, whether they will lend on that property type etc?

Also, lending criteria varies MASSIVELY from one lender to the next. A comparison website will tell you the interest rates, but do you really want to speak to/submit applications to several lenders before you find one who will lend you the required amount?

A broker will completely remove this hassle from the process which will allow you to spend more time thinking about colour schemes and furniture purchases! Better still, if your broker charges no fees then there is nothing to lose.

How much can I borrow?

In short – it depends on a number of factors. It also varies massively from one lender to the next. A broker will calculate your borrowing capacity with the lenders who offer the most suitable products.

Please bear in mind though – the KEY question should NOT be “How much can I borrow?”. This is secondary to “How much can I afford?” or “How much will it cost?”. Affordability is everything…..

Should I go for a Fixed or Variable rate?

It ultimately boils down to personal preference. A broker can offer his/her opinion, but no broker can guarantee if or when rates will increase or decrease. At the end of the day it comes down to this – a fixed rate gives complete certainty of monthly payment, whereas variable rates come with an element of uncertainty.

How long does the application process take?

Again, this can vary massively from lender to lender. If your purchase comes with a tight date-of-entry then your broker will inform you of those lenders who will give you the best chance of meeting this date, an advise accordingly. This type of information cannot be derived from a comparison website unfortunately.

What documents will I require?

Again, each lender has different requirements in this regard. An experienced broker will know exactly what will be required to support your application. However, you will always be required to prove your identity, address, the source of your deposit and, most importantly, your income.

Why do some mortgage products have such large fees?

We often wonder the same thing! To be honest, lenders have complete discretion as to the fees that they charge, and typically fees have increased in recent years.

However, most lenders offer a number of rate & fee “combinations”. Often the lowest rates will carry the highest fees , so your broker will calculate the most suitable option based upon the size of the mortgage and the term of the ”product”, always with your monthly affordability and other requirements in mind

I’ve heard that I’ll need a huge deposit?

The size of deposit required will depend on a number of factors. Generally though you will need a deposit of minimally 10% of the purchase price, although certaint purchase schemes can accommodate a 5% deposit. Speak to us and we’ll keep you right.

The size of deposit will have a bearing on the product, in that those with a large deposit will achieve a better product than those with a small deposit. However in saying that, products for those with smaller deposits have improved significantly in recent months.

I’m employed on a fixed-term contract. There’s nothing available, is there?

Whoever told you that has misinformed you! Yes, lenders will consider contractors differently to those in “full-time” permanent roles, and the stance varies from lender to lender. However, there could still be many options available, particularly if you have been contract for a reasonable period of time. As always, speak to us and we’ll inform you of your options, always with affordability at the forefront of our thinking.

How secure is my information?

It goes without saying that everything is treated in the strictest of confidence.

We also run a “paperless” system. This means that we have no filing cabinets and our shredder is the most overworked piece of kit in the office.

Data security is a fundamental principle of our company, and upon meeting you we will explain in full how your data is stored and used.

Do I need a solicitor? If so then when do I need to assign one?

You will require a solicitor to purchase a property. Typically you would assign one once we have established your mortgage options and you’re in a position to make an offer on the home of your dreams. You may already have a solicitor or take a recommendation from family or friends. Alternatively, we would be happy to refer you to one of our trusted (and competitively priced) contacts.

Will I need to arrange my own survey?

If you’re looking to purchase a property in Scotland then more often than not there will be a home report provided by the seller. In the vast majority of cases this report will be suitable for mortgage purposes. The situation is different in England & Wales, where home reports are no longer applicable. For English & Welsh purchasers the survey would typically be carried out by the lender, mostly at the cost of the borrower.

In some instances Scottish purchase clients may be required to instruct their own survey or arrange one via the lender. Typical examples include new-build purchases, purchases on a private sale basis, or if you’re purchasing a property that has been on the market for several years.

What insurance do I require?

To put it simply – it depends on your requirements. We will therefore tailor a protection/insurance solution to suit your own individual needs, whether your requirements be mortgage-related or otherwise.

When will the lender take my first monthly payment?

As with most of these answers, it varies from lender to lender. Some lenders collect their monthly payment in “advance” of the month, whereas some collect in “arrears”. However, we will provide guidance and the lender will write to you on day one to give a breakdown on when the first (and subsequent) payments will be taken.

If I switch lenders in the future will I incur huge fees?

It is not a “given” that you’ll need to switch lenders when your initial mortgage product expires.

As clients of MOV8 Financial we will contact you prior to the rate expiring to review the situation and find out your objectives at that time. The first thing we’ll then do is to consider the options available with your existing lender.

We’ll then compare these products to those available from the market, and if it makes financial sense to switch lenders then we’ll recommend this. If it makes financial sense to stay then we’ll recommend this instead.

Either way, every possible fee (large or small) will get taken into consideration prior to recommendation.

When will interest rates rise?

Ah, the $64,000 question! The honest answer to this is that we don’t have a crystal ball, nor are we the Governor of the Bank of England, so we cannot say for sure. Please therefore see the answer to the FAQ “Should I go for a Fixed or Variable rate?”