Mission San Jose Mortgage


That is a mortgage broker qualified to give you advice on buying a mortgage.

Many operate as part of a one or two man band operation, or are tied to estate agent. Some mortgage brokers work from home and rely on referrals from intermediaries such as accountants and solicitors for business, while others work online, using the Internet to generate business.

There are around 10,000 mortgage products on the market, so it&apos a very good idea to consult a mortgage broker for help in finding the right product. They will be able to tell you about the best deals currently available, including some that are exclusive to advisers.

They will also be able to offer advice about how to repay your mortgage, home insurance and other financial matters.

The amount of money depends on the amount you can comfortably afford to repay each month. It will also depend on the mortgage lender you choose as each has its own guidelines.

Some mortgage lenders may only lend you a multiple of three times your income while others may stretch to four, five or even six times.If you are buying as a couple the mortgage calculation multiples will be different.

Some mortgage lenders will lend you two and a half times both annual incomes while others will offer three to three and a half times the greater income plus one times the second income.

Somehow the major factor getting your mortgage is determined by the amount you earn. Lenders generally apply multiples to your income to calculate your maximum loan.

Lenders may be prepared to offer high mortgage multiples if you are putting down a large deposit: because you are committing more of your money to the property it represents stronger security, and they may therefore be prepared to lend you more.

Your credit history is also important in determining which lenders will be prepared to lend to you, or whether they will offer you their most favorable rates.

If you have consistently met your payments under current and previous credit agreements you will be entitled to the more competitive mortgages on the market.

If, however, you have failed to keep up your payments, the mortgage rates available are likely to reflect this.

Finally, the third important factor in determining a lender&aposs decision is the property itself; the value and general condition of the property will always need to be assessed to ensure that it represents adequate security.

Also some lenders have criteria which may rule out certain property types.

The mortgage lender will require pay slips or other proof from your employment if you are employed.If you haven&apost been in business long enough to establish you can afford the mortgage, a mortgage company may want three years&apos audited accounts or an accountant&aposs note.

Some mortgage firms are more lenient than others. An independent mortgage broker can provide impartial guidance.

Mortgage repayment choicesYou can choose from three mortgage repayment options:Capital payback mortgages allow loan repayment over time. Your monthly payment includes interest and capital repayment to pay off the mortgage at the end. This repayment option guarantees mortgage payback at the end of the term if all payments are made.

However, if you choose an interest-only mortgage, your monthly payment will be interest only, keeping your borrowing constant. Assuming no lump sum repayments, you will still owe the same amount at the conclusion of the mortgage term.

In this case, you must arrange for lump sum repayments, an endowment or pension plan, or the sale of the property to repay the debt. This option lowers monthly costs but increases your obligation and risk.

Part and part is the final option, where you pay interest on part of the loan and capital payback on the rest. If you have an endowment that won&apost cover your debt at the conclusion of the term or have increased your borrowing and want to be sure you&aposll pay it off, this may be right for you.

Mortgage product pros and consYour mortgage option depends on your situation and risk and cost tolerance.If security is your top priority, fix your mortgage rate for an initial term so your payments can reduce but not raise.

The main drawback of most fixed and capped rates is that if you switch mortgage lenders or pay off your mortgage early, you may have to pay a large early repayment charge. If you want to keep your options open and safeguard future flexibility, this may be a major reason to avoid them.

Prepayment fees...Lenders often attach early repayment charges to the initial period of a mortgage, either in line with an initial fixed or discounted rate or beyond it (known as overhang).

If you switch lenders within the mortgage offer&aposs early repayment period, the lender will likely charge you. Moving or paying off the mortgage may incur fees. If you want to move or shop around, a mortgage product with no early repayment charges is best.

However, if you want to fix your monthly payment and have no plans to change lenders, an early repayment charge may not matter.

Early repayment fees are usually a percentage of the sum and vary by lender. We must inform you of all penalties before you choose a product.

Not necessarily, as some mortgage companies try to be as helpful as they can particularly to first time buyers. Generally speaking however, it does make life easier if you can find a deposit and the more you can put down the better, as you will be able to enjoy a cheaper and better interest rate.

You must be over 18 to have a mortgage and most lenders generally recommend the mortgage term does not extend beyond your retirement age. You will not be discriminated against because of your colour, race, ethnic or national origin, your sex or if you are disabled. However, you will need to have the right to reside and work in the UK for at least the duration of the mortgage. Up to four people can be joined in an application. At least one applicant is required to have an acceptable form of income and all should have a good credit history. Your application will be subject to a credit check and you will need to prove your income.

The usual term is 25 years but your loan can be for any term from five to 30 years. It should ideally end on or before your normal retirement age.

Higher Lending Charges...Some lenders charge a one off insurance premium, known as the higher lending charge, to cover themselves in any case of high risk lending, which is generally (but not always) defined as lending above 90% of the property value.

This insurance does not benefit the borrower in any way, but covers the lender if, in the event of repossession, there is a shortfall in repayment of the outstanding debt. Were this situation to arise, the insurance company that provided the policy will often pursue the borrower for the equivalent of the money claimed by the lender.

The one off premium is usually added to the loan, rather than being paid upfront at the outset, and the borrower will therefore also be paying interest on this additional borrowing for the life of the mortgage, unless it is paid off with a lump sum or regular overpayments.

More and more deals are now being offered without an early repayment charge; in our experience many people (particularly first time buyers) are needlessly paying it.

Occasionally, however, a situation could arise where the advantages of a particular deal outweigh the disadvantage of having to pay the premium. In this case we would clearly include the fee, along with all other fees, in our illustrations, and its significance would be explained to you in full at the outset.

The mortgage valuation is solely for the purposes of a mortgage lender to satisfy itself property provides sufficient security for company to lend on it. The mortgage valuation does not give any indication whether the property is worth what you are paying, nor does it provide a comprehensive list of any repairs required.

Lenders need expert guidance on what the property in question is worth as security for them to lend on it. They instruct a value to assess the property for this purpose.

Portable mortgages...If you decide to move home it is important to know from the outset whether you have early repayment charges as lenders will only charge penalties if you change lender, or reduce the loan size, and not (with portable mortgages) if you are actually moving to a new home. This can be an important factor to take into consideration if, for example, you are considering whether or not to go for a long term fixed rate: you may not be sure whether you wish to move or not during the initial fixed period, but as long as you have a portable mortgage you will be keeping this option open. Portability can still be an advantage even when your mortgage product has no redemption penalties at all. For example, you could have secured a particularly favorable deal originally and the market could subsequently have changed, leaving no comparable deals: it would obviously make sense in this situation to keep the product that you have, rather than switching when you move house.

Always call your lender straight away. They will do all they can to help you overcome your difficulties and work with you to find a solution. With your co-operation they can develop a plan for dealing with your financial difficulties and clearing any arrears.

Mortgages are usually designed to be repaid no later than the borrower&aposs normal retirement age, usually 65 for employed people (male and female) and 70 for self-employed. Most mortgage companies will consider a longer term providing the borrower has enough income after retirement.

If you lose your job and cannot make your mortgage payments your house could be at risk. It is strongly recommended you take out a mortgage accident sickness and redundancy policy in connection with your mortgage, which will pay your loan repayments for up 12 months, while you get back on your feet.


Security of your personal information is a prime concern to all mortgage lenders and intermediaries. Online mortgage application forms enable you to enter your application details and transmit them electronically to the lenders in a secure environment. Lenders use the most up-to-date security techniques to ensure the details of your online mortgage application are received securely.