Frequently Asked Questions

Credit scoring is like a financial footprint, showing lenders how you've managed money in the past; it's their way of peeking into your financial habits.

Various factors play a role in your score, including payment history, how much debt you have, and how long you've been using credit; it’s like a puzzle, with each piece contributing to the overall picture.

A higher score can unlock doors to better loan terms and interest rates, so it’s worth keeping your financial footprints neat and tidy!

Your credit history is like your financial diary, recording how you’ve managed your money, debts, and bills over time.

It includes details of credit accounts, repayments, any late payments, and public records, painting a picture of your financial behaviour for lenders.

Think of it as your financial reputation – it helps lenders decide how risky it might be to lend you money or offer you credit!

Loan to Value (LTV) is like the financial seesaw between the value of your home and the amount you want to borrow – it’s expressed as a percentage of your property’s value.

A lower LTV usually means you have more equity or a bigger deposit, and it often unlocks lower interest rates because lenders see you as a lower risk.

So, it’s a balancing act – the smaller the loan compared to the value of your property (lower LTV), the more favourable your mortgage rate might be!

A mortgage deposit is like the golden key to your new home; it’s the chunk of money you’re putting towards the property’s price, right from the start.

Wondering where it can come from? Savings are a common source, so that piggy bank or savings account you’ve been nurturing can really come into play!

Gifts from family or friends are another option – it’s like a financial helping hand towards securing your dream home.

Some folks also use equity from their current property or bonuses from work, making every penny count towards that front door.

And in some scenarios, you might even consider taking out a personal loan to boost that deposit, but it’s essential to weigh this option carefully to ensure it’s the right fit for your financial situation.

Remember, the deposit is crucial – it affects your mortgage amount, interest rates, and monthly payments, so it’s the foundation of your home-buying journey!

"Kicking off your house buying journey in the UK is all about spotting your dream home and figuring out how much you can afford, so you can set your budget right from the start."

"Once you’ve got your eye on a place, it’s time to put in an offer – fingers crossed! – and secure a mortgage that suits your wallet."

"With your offer accepted, you'll team up with solicitors to check all the legal bits, ensuring everything’s in tip-top shape with the property."

"Then it’s the home stretch – exchanging contracts, which makes the deal legally binding, and finally, getting those keys in your hand on completion day!"

"It might feel like a marathon, but with every step, you’re getting closer to stepping over the threshold of your new home!"