FAQs

Key Facts Illustration?

This is a document your lender must send you by law, outlining the main facts about your loan, including the total amount you’ll be borrowing, what your interest rate will be at the beginning and then after any deal ends, and how much you will pay per month – including the potential impact of any rate rises.

It’s important you read this document carefully and make sure you’re comfortable with every aspect of your mortgage. If there is anything about your KFI that you don’t understand, it’s important that you check with us so that we have the chance to explain it to you.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Affordability?

This is the term used in the financial services world to describe your financial status – literally, how much you can afford to borrow and repay, based on factors like your employment position, your income, debt levels, income, outgoings and any other financial responsibilities.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide. 

Loan-to-value?

This is like looking at your available deposit from the other angle – how much you are borrowing compared to the value of your intended property. Again, the lower the loan proportion compared to the overall value, the better the rate you are likely to be eligible for. Lenders have their own individual criteria for the loan-to-value they will accept on a property but a good rule of thumb is to aim for 90 per cent or less.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Deposit?

The amount you need to put down to secure your home loan. This starts at five per cent and can be as high as you want. As a general rule of thumb, the more you put down up front, the lower the interest rate you can expect to pay.

For more information about deposit requirements in the current financial climate, see our downloadable mortgage guide [link].

Decision-in-principle?

This is the name for the lender’s informal decision to lend to you, subject to them carrying out further background checks to formally underwrite your case.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Mortgage offer?

This is the formal legal offer, a kind of promise from the lender that they will lend you the money you’ve requested. Your mortgage offer is dependent on your property valuation, credit checks, legal work such as property searches, and informal online search checks that lenders perform, to make sure there are no concerning associations with your name.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Buy-to-let mortgages?

These are mortgages for landlords and are available both to existing and first-time landlords, although in today’s climate, previous experience of property investment can help you secure a loan.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Mortgages for self-employed people?

In today’s tighter lending climate, unfortunately it’s not as easy as it used to be to secure a mortgage if you are self-employed.

You will need to produce two years of financial accounts, to prove that you earn sufficient income from your business to support your requested loan.

It used to be that you could consider a so-called ‘self-certification’ mortgage, which basically meant you could choose not to provide details of your income to a lender to get a loan, in return for paying a slightly higher rate.

However, the Financial Conduct Authority has changed regulation so that these kinds of loans are now no longer available, because of the greater risk attached to them that someone wouldn’t be able to pay back what they were borrowing.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Residential mortgages?

These are ‘standard’ loans for property you intend to live in as your first home.

These are available with minimum deposits of five per cent, although the bigger the deposit you can put down, the lower the interest rate you are likely to pay.

Affordability is a major factor for all mortgages these days, and a lender will want to get to understand your affordability in detail – your income, outgoings and credit history – in order to decide whether to lend to you.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide. 

Second-home mortgages?

This is a mortgage to help you buy a second home – for example, a holiday home. If you are still paying off a mortgage on your main home, you are likely to have to take out a separate second mortgage to buy another residence.

Not all lenders offer second home mortgages and, because of the increased financial responsibility this represents, those that do apply stricter criteria to applications, basically to make sure that you can afford what you are taking on. For example, you are likely to need a larger deposit than for a first home mortgage (at least 25 per cent), and will probably pay a higher interest rate if you are accepted.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Remortgages?

This term refers to when you are securing a new mortgage deal for your existing property. If your mortgage is on a typical fixed rate term of two, five, seven or 10 years, it is always a good idea to review it towards the end of that term. This is because, very often, you will often be able to secure a better interest rate and lower monthly payment than your current arrangement.

Your circumstances may also have changed in the intervening years – for example, you will have reduced the amount you owe, you may want to review the remaining term of your

mortgage for a variety of reasons, or you might want to borrow some extra (see question on this below).

The end of your mortgage deal is an opportunity to consider all of these things, and make sure that you remain on the right package for your latest circumstances.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Guarantor mortgages?

This is an option for people who can’t meet affordability criteria on their own, like recent graduates, who are on lower incomes but have good prospects.

Not all lenders offer guarantor mortgages but to secure one, your guarantor will need to go through the application process with you and prove their affordability and ability to take over your loan should you get into difficulties.

Obviously, this is a big responsibility for anyone, and therefore you need to make sure that you have a very strong relationship with anyone who steps forward as your guarantor.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Let-to-buy mortgages?

These are loans that allow you to let out your existing mortgage, to free you up to buy your next home. Usually, it will involve effectively transforming your existing residential mortgage into the equivalent of a buy-to-let one, with a correspondingly higher rate.

The projected rental income on your first home will be enough to cover the mortgage payments, and then your own affordability and the amount of equity you have to cover the second home deposit will govern how much more you are able to borrow.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Help to buy mortgages?

These are a Government initiative to help first time buyers onto the housing ladder. This ‘equity loan’ scheme is available for purchasing new build properties and offers support to people with a five per cent deposit.

The Government lends you up to 20 per cent of the property price and you start paying interest on that loan after five years.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Further borrowing?

This is the term used for extra ‘secured’ borrowing you make against the value of your home. You might want to do this, for example, to fund some home improvements or an extension. However, because increasing the amount you owe on your property is a big step, you should always make sure you only do so for the right reasons – as it will incur additional interest over longer than other types of loan, making it more expensive over all.

Lenders are not as keen to let you borrow extra money against your home these days and will take you through a detailed application including further affordability checks before deciding whether to let you have the money.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

Porting your mortgage?

Most mortgage deals include the right to take your mortgage with you if you decide to move home partway through the agreed term.

However, be aware that you will only be allowed to port the agreed amount of your mortgage. If you want to move to somewhere more expensive, you will have to satisfy fresh affordability checks and go through a full new application process to gain approval for the increased borrowing.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

What are the steps?

You can get a quick quote from us in seconds, by entering some basic details in with our Quick Quote function. This will tell you how much you can borrow, and what sort of rates might be available to you.

If you like the result you can apply for a mortgage by entering more details. Our clever artificial intelligence-powered systems will then scour the market for the best options available to you, and draw up a shortlist suitable to you in minutes. Our friendly mortgage experts chat through these with you and advise you on your options, to help you make your final choice.

Once you’ve done so, we submit your application and do all the hard work behind-the-scenes to get you your loan.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

How much does it cost?

We don’t charge a fee for our advice. Our income comes from the procuration fees lenders pay us for each loan we submit. Each lender pays different ‘proc’ fees and the specific amounts will be outlined on the key facts illustration they supply you with when they issue your decision in principle.

You will need to pay the application fee and any other relevant fees charged by your chosen lender.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

How long does it take?

You can potentially get a decision in principle from your chosen lender in a matter of minutes if you follow our steps and provide us with all the information we need at each stage.

Each lender will have their own timescales for progressing applications from decision in principle to offer stage, depending on factors like how busy they are. The average mortgage takes around two to four weeks to complete and is influenced by things like how long your legal work takes, but you can rest assured we’ll push for things to happen as quickly as possible for you.

For help, hints and tips in securing yourself a mortgage, see our ‘The Answer’s Yes’ downloadable mortgage guide.

When should I apply?

You’ll know yourself when the time is right to launch your formal mortgage application. Our Quick Quote option will give you an idea how much you are likely to be able to borrow and at what rate, and our ‘The Answer’s Yes’ downloadable mortgage guide contains lots of helpful hints and tips for getting generally mortgage ready and giving yourself the best possible chance.

What if the quick quote shows I’m not eligible?

This might mean you need to re-think your home buying ambitions, and look for a property that falls within your affordable range.

Our ‘The Answer’s Yes’ downloadable mortgage guide contains lots of helpful hints and tips for getting generally mortgage ready and giving yourself the best possible chance, as well as a view of what lenders are looking for in the current market.

Who will I be dealing with?

A mixture of our amazingly clever and friendly chatbots, and our equally fantastic human mortgage experts, all turbo boosted by the latest artificial intelligence technology to make your mortgage application process as quick, easy and stress-free as possible.

Read more about us here.

Our ‘The Answer’s Yes’ downloadable mortgage guide also contains lots of helpful hints and tips for getting generally mortgage ready and giving yourself the best possible chance.

What if I’ve got a question?

You’ll be able to ask us anything you want via our online chatbox function, and receive sound advice from our team of mortgage experts with their decades of industry experience.

Read more about us here.

Which lenders do you work with?

We have access to a comprehensive panel and almost every lender, forging strong relationships with everyone from the big players to the niche providers.

Read more about us here.

What do I need to do?

Enter a few basic details into our Quick Quote system to find out how much you are likely to be able to borrow. Then, if you’re happy with what this tells you, you can apply by entering more details, with advice from our experienced mortgage experts via chatbox to guide you through every step.

Then we’ll manage your case with your chosen lender, to get your mortgage sorted for you in the quickest possible time. Providing us with any documents we need, as quickly as you can, will help us make it happen for you as efficiently as possible.

Our ‘The Answer’s Yes’ downloadable mortgage guide also contains lots of helpful hints and tips for getting generally mortgage ready and giving yourself the best possible chance.

How will I know which product to choose? (advice)

Our clever, artificial intelligence-powered systems will narrow down the field to the best available options for you. Then, our experienced mortgage experts will guide you through making the most appropriate choice for you, to ensure the perfect match.

Our ‘The Answer’s Yes’ downloadable mortgage guide also contains lots of helpful hints and tips for getting generally mortgage ready and giving yourself the best possible chance.

How do I know I can trust you?

We’re authorised by the Financial Conduct Authority and work with almost every lender in the UK, including many of the biggest players, and our team of friendly mortgage experts have decades of experience as mortgage advisers.

Read more about us here.

Our ‘The Answer’s Yes’ downloadable mortgage guide also contains lots of helpful hints and tips for getting generally mortgage ready and giving yourself the best possible chance.

Who owns HOOCHT.?

HOOCHT. is owned and run by three experienced businessmen, with experience in a range of sectors, including Richard Wynn, time-served and accredited mortgage broker who previously ran successful telephone mortgage brokerage MortgageCube.

Read more about us here.

Who works for HOOCHT.?

Read more about us and the HOOCHT. team here