Mortgage Loan FAQs

How much can I borrow for a buy to let property?

How much you can borrow for a buy-to-let depends on the property’s rental income per month. This will be used to work out how much you are able to borrow to purchase it.

What not to do during during mortgage approval?

  • Don’t apply for new credit
  • Don’t miss credit card and loan payments
  • Don’t make any large purchases
  • Don’t switch jobs
  • Don’t make large deposits without creating a paper trail

What size deposit do I need for a buy to let?

You’ll need to have a 25% deposit available. If not, you won’t be able to apply for a buy-to-let mortgage.

Will I need another deposit?

This all depends on the value of your next property compared to your current property, and how much equity is currently in your home. If you’re downsizing or have been paying off your current mortgage for a long time, it’s likely that you’ll have enough equity in your home to cover the deposit needed for your new property. If you’re upsizing, the deposit you need for your new property is going to be bigger than the one you needed for your current home. If you’ve been paying off your mortgage for a while now, you may have enough to cover it from selling your home. If not, you’ll need to find the money to pay the difference.

What could prevent me from getting a mortgage loan?

  • Your credit score. …
  • Black marks on your credit report. …
  • Your income. …
  • Excessive debt. …
  • Your employment history. …
  • New debts after you apply. … 
  • A too-small down payment. …
  • A lack of documentation Issues with the home itself..
  • Your credit score. …
  • Black marks on your credit report. …
  • Your income. …
  • Excessive debt. …
  • Your employment history. …
  • New debts after you apply. …
  • A too-small down payment. …
  • A lack of documentation …
  • Issues with the home itself..

What does an EMI mean?

EMI refers to the ‘Equated Monthly Installment’ which is the amount you will pay to us on a specific date each month till the loan is repaid in full. The EMI comprises of the principal and interest components which are structured in a way that in the initial years of your loan, the interest component is much larger than the principal component, while towards the latter half of the loan, the principal component is much larger.

What does “Market value” of the property means?

Market value refers to the estimated amount that is expected to be fetched on the property as per the prevailing market conditions.

What does “Agreement to sell” mean? Does it have to be registered?

The ’Agreement to Sell’ in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc. In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

What does encumbrance refers to?

Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.

What is a house renovation loan?

It is a loan for renovating (without altering the structure/carpet area) your home in ways like tiling, flooring, internal / external plaster and painting etc.

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from - Youtube
Vimeo
Consent to display content from - Vimeo
Google Maps
Consent to display content from - Google
Spotify
Consent to display content from - Spotify
Sound Cloud
Consent to display content from - Sound