Frequently Asked
Mortgage and Protection Questions & GlossaryRead some of our most frequently asked mortgage and protection questions and have a look through our helpful glossary
With over 180 years of combined property, mortgage and protection industry experience, we share our extensive knowledge to help our clients.
Why should I use Coombes & Wright Mortgage Solutions?
We make it our priority to provide a local, flexible and friendly advice service. We pledge to:
- Simplify securing and completing your mortgage and protection products from initial enquiry to completion.
- Search a comprehensive range of lenders across the market, with access to over 65 lenders, to find suitable products to meet your current needs.
- Fully explain the process, options and pricing.
- Explore and compare quotes for protection cover based on an analysis of a number of insurers.
- Offer free no-obligation initial consultations, either face-to-face or over the phone or on a video call.
- Manage the complete mortgage and protection process for you, including all application paperwork and admin, liaising with your lender, solicitors, estate agent or new home builders.
- Keep you updated at every stage to prevent delays and create a stress-free experience.
What should I expect from my Mortgage & Protection Adviser?
At Coombes & Wright, we understand that every house purchase or protection cover is different. Our advisers are trained to listen first and understand you and what you need before providing their personalised advice.
We maintain proficient levels of professional advice by applying continuous high market and product knowledge standards at every point of contact. We remain entirely up to date on the latest mortgage deals, protection products, market trends, and legal requirements. Our role is to have a holistic view of your current needs and an understanding of your future plans. This way, we can better assist with making your dreams a reality.
Our dedicated Client Support Team facilitate the smooth processing of our client’s mortgage applications, progressing cases to completion with her friendly and diligent client liaison.
What information will I need to get a mortgage?
What is a mortgage broker?
What type of mortgage is best for me?
How much deposit do I need for my first mortgage?
Currently, mortgage lenders will lend up to 95% of the value or purchase price, whichever is lower. This means you will be required to put a 5% deposit down, and the more deposit you can produce, often the more cost-effective the deal that lenders will offer.
Don’t worry if you can’t produce this size of deposit. Coombes & Wright Mortgage Solutions can look at alternative ways of getting you on the property ladder, for instance, Shared Equity or Shared Ownership.
What will my mortgage payments be each month?
What’s the difference between a remortgage and a purchase mortgage?
How much can I borrow?
Most mortgage lenders calculate how much they will lend based on affordability, analysing your monthly income and expenditure. Coombes & Wright Mortgage Solutions can obtain an accurate borrowing figure based on your circumstances.
Each lender adopts a different way of calculating your borrowing, which is where we can help you find a suitable mortgage product. The amount you can borrow depends on several factors, including your income, outgoings, credit history, size of the deposit, whether you have dependents and more. These are just a few considerations our experienced Mortgage Advisers will discuss with you.
How long can I borrow for?
What’s the difference between critical illness and income protection?
Income protection is an insurance policy designed to replace a percentage of your income if you cannot do your job through illness or injury. Your utility bills, mortgage and general outgoings each month could continue to be paid until your return to work.
Critical illness is a lump sum payment if you are diagnosed with a critical illness, including some forms of cancer, stroke, heart attack and many others. The lump sum is paid so that you can pay off your mortgage earlier than planned and minimise any effect on your lifestyle.
Do I need life insurance to get a mortgage?
While life insurance is not a mandated condition of your mortgage lender, it is an important consideration. Life insurance and other protection cover allow you to safeguard your family and loved ones from mortgage debt and financial difficulties should the unthinkable happen.
Critical illness is a lump sum payment if you are diagnosed with a critical illness, including some forms of cancer, stroke, heart attack and many others. The lump sum is paid so that you can pay off your mortgage earlier than planned and minimise any effect on your lifestyle.
Glossary
We have created the following glossary of mortgage and protection terms, words, products and phrases to help you understand your options. If you have any questions, please contact our team.
- Life Insurance – insurance that pays out a sum of money either on the death of the insured person or after a set period.
- Family Income Benefit – is a type of term life insurance policy that will give your family regular financial support if you die or are diagnosed with a terminal illness.
- Critical Illness Cover – provides you with a lump sum of money if you are diagnosed with certain illnesses or disabilities.
- Income Protection – pays you a regular income if you can’t work because of sickness or disability and continues until you return to paid work.
- Mortgage Protection – is a type of policy that helps to pay your monthly mortgage repayments if you can’t work due to illness or a serious injury.
- Private Medical Insurance – is designed to cover the cost of private medical treatment for ‘acute conditions’ that start after your policy begins.
- Rent Protection – protects landlords against loss of income if a tenant falls behind or defaults on rent payments.
- Limited Company Relevant Life Insurance – is designed to allow employers to provide an individual death in service benefit for an employee in a tax-efficient way, both for the employer, employee and the employee’s beneficiaries
- Equity release – the use of financial arrangements that provide the owner of a house or other property with funds derived from the value of the property while enabling them to continue using it.
- First-time Buyer Mortgages – if you’ve never owned a home previously, either in the UK or abroad. You only own, or have owned, a commercial property.
- Remortgages – when you move your mortgage on your existing property, from one lender to another.
- Buy-to-Let Schemes – is for people looking to buy a property to rent out, rather than live in it. Most Buy to Let mortgages are interest only. This means that the monthly repayments will only pay off the interest, not the amount owed on the mortgage.
- Government-backed 5% Deposit Schemes – The scheme means more 95% loan-to-value (5% deposit) mortgages. Under the scheme, first-time buyers, home movers and previous homeowners with a 5% deposit have access to 95% loan-to-value mortgages (meaning the loan is for 95% of the property’s value).
- Parent/Family Assist Mortgages – will allow your family members, and sometimes friends, to help you buy a home.
- Home Improvement Financing – is a type of unsecured personal loan – allowing you to borrow a lump sum to help fund renovations or refurbishments.
- Holiday Lets – this is where a property is let for the purpose of a holiday only. Generally, this will be where the guest has a main home elsewhere.
- Lifetime Mortgages to release equity for over 55’s* (via referral) -Involves securing a loan against your property (if you take out a lifetime mortgage) or selling a share of your home to the equity release provider.
- 2nd Charge Lending (via referral) – can be an ideal solution for fund raising when a remortgage or further advance are not viable.
- HMO Mortgages – is a type of specialist mortgage that is used to finance house in multiple occupations.
- Bridging Finance – is a short-term loan used until a person or company secures permanent financing or pays an existing obligation.
- Right-to-Buy – allows most council tenants to buy their council home at a discount.
- Help-to-Buy – is a government scheme to help first-time buyers get a property with just a 5% deposit.
- Shared Ownership / Shared Equity – involves buying a share of a property and paying rent on the rest. Shared equity involves paying a low property deposit, using an equity loan for a percentage of the property’s value, and getting a mortgage for the remaining amount.
- Debt Consolidation – when you take out a single, new loan to pay off several existing debts. This can be a good way of taking control of your finances but you need to be careful.
- Adverse Credit / Poor Credit Mortgages – mortgages designed for people with poor credit, and some lenders specialise in offering these. These are known as bad credit mortgages, adverse credit mortgages, or sub-prime mortgages.
- Rate Switch Comparison (up to 6 months before current deal ending) – is the process of switching to a better rate with your existing lender.
- Commercial Lending (via referral) – is a debt-based funding arrangement between a business and a financial institution such as a bank.
- Retirement Interest-Only Mortgage – is available to people over 55. It’s a loan secured against your home. You pay the interest each month, which means the amount you owe doesn’t increase over time. You can use it for most purposes (including paying off an existing mortgage).
CONTACT COOMBES & WRIGHT MORTGAGE SOLUTIONS
Get in touch with us today to learn how we can provide you with flexible and friendly mortgage and protection advice.
