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oak.wealthyadvisersclub.co.uk

Straight answers.

The questions we are asked most often. If yours is not here, ask us. No question is a silly one.

Mortgages

How much can I borrow?

There is no hard and fast rule. Every lender works out affordability differently, based on its own criteria and your circumstances. They look at the size of your deposit, your credit profile, your income and your outgoings.

Our affordability calculator gives a rough guide. A conversation gives you a real answer.

How much deposit will I need?

Most residential lenders ask for a deposit of at least 5% of the property value. For buy to let, lenders usually ask for around 25%. A bigger deposit generally opens up more lenders and lower rates.

What is the best interest rate available?

It is not just about the interest rate. A low rate with a high fee can cost more overall than a slightly higher rate with no fee. We look at the whole picture, including fees, cashback and early repayment charges, and recommend what suits your circumstances.

What is an agreement in principle?

It is a statement from a lender of how much it may be willing to lend you, based on some basic information and a credit check. Estate agents often ask for one before they will take an offer seriously.

It is not a mortgage offer and it is not guaranteed. The lender still has to assess a full application and value the property.

How long does a mortgage application take?

It varies by lender and by case. Some offers come through within days and others take several weeks, especially where the lender asks for more information. The purchase as a whole usually takes longer because of the legal work.

Credit history and income

Can I get a mortgage with bad credit?

Often, yes, although it depends on what happened, how much it was for and how long ago. Some lenders decline for a couple of missed payments. Others will consider defaults, CCJs and debt management plans, usually at a higher interest rate.

Read more about bad credit mortgages.

Will checking my credit report affect my score?

No. Looking at your own report is not the kind of search that lenders see or that affects your score. You can get your credit report here.

I am self-employed. How many years of accounts do I need?

Most lenders want at least two years of figures. Some will consider one full year of trading.

Read more about self-employed mortgages.

Protection and insurance

Do I need life insurance to get a mortgage?

No. Lenders do not make life insurance compulsory. It is worth thinking about if anyone depends on you financially and you would want the mortgage paid off if you were no longer around.

How much will life or critical illness cover cost?

There is no set price. It depends on you and the cover you choose. Insurers take into account things like your age, medical history, height and weight, and whether you smoke.

Do protection policies actually pay out?

Like any insurance, a policy will not pay out if important information was not disclosed on the application, or in cases of fraud. Otherwise, if the claim is for something covered by the policy terms, it should be paid.

That is why we take care over the application with you, so that what the insurer knows is complete and accurate.

Is buildings insurance compulsory?

If you have a mortgage, your lender will require it as a condition of the loan. Your solicitor will usually ask to see the policy around the time you exchange contracts.

Working with us

Where are you based?

In Cardiff. We advise clients across South Wales and all around the UK by phone and video call. If you are local, we are happy to meet face to face.

When can I speak to you?

Our phone lines are open from 9am to 5pm on weekdays. Appointments are available at times to suit you, including evenings and weekends. You can book a call online at any time.

I found Phil on TikTok. Can I just book a call?

Yes. Some of our clients first came across Phil that way. Pick a time that suits you and you will speak to Phil.

Do you charge a fee?

We will tell you about any fee for our advice before you commit to anything, and confirm it in writing. There is no charge for the first conversation.

Still have a question?

Book a free call or pick up the phone. We are happy to talk it through.