An agreement in principle can be obtained as an initial step but any lender won’t make a definitive mortgage offer until a proper valuation has been undertaken on the property you’re looking to purchase or re-mortgage.
This is a mortgage where the monthly repayments are made up from a combination of repaying the capital amount borrowed together with the accrued interest. Here the amount borrowed decreases throughout the term and the loan is repaid in full by the end of the loan term.
With an interest only mortgage, you repay the interest charged on the loan for the whole mortgage term, but this doesn’t repay the capital itself and come the end of the fixed term the capital remains outstanding and the lender looks towards a strategy in place for the borrower to pay off the loan. This can be in the form of an investment policy or equity in the property itself.
Interest-only mortgages are now seldom used for residential home purchases, although they’re still frequently adopted by landlords for Buy to Let mortgages.
Yes this is possible depending upon your circumstances. We have access to the whole of the mortgage market, dealing with a full range of lenders who each have their own niche and specific lending criteria which can vary greatly. We work with a lot of clients who have a bad credit history for whatever reason and often find a solution.
LTV is an often used industry term meaning loan to value and represents the amount of the mortgage expressed as a percentage of the security property’s value. If the LTV is low then that is indicative of the equity value in the property. Lenders often use LTV as a threshold for varying levels of product and sometimes rates can be determined this way though not always depending upon the lender and current deals.