Insight for buyers and mortgage holders from Future Planning

Sanjay Badhan answers your FAQs on mortgages, deposits and early repayment charges.

How long do I need to be working for to secure a mortgage?

Each lender differs, however as a minimum some lenders will be happy to accept a signed work contract as proof of your employment or your first payslip, so probably shorter than you think.

I’m self-employed - can I apply for a mortgage?

Yes! You only need a minimum of one year’s accounts.

What happens if I want to move home?

Some mortgages are portable, meaning you may be able to transfer the mortgage deal you have on your current property to a new property. You might also be able to apply to borrow more money at the same time.

What happens when my product runs out?

Your product will revert to the lender’s SVR (standard variable interest rate) and your mortgage payment may increase. Our advisers will offer you a free mortgage review and help you avoid reverting to the SVR at the appropriate time. One less thing for you to worry about!

How old do I need to be before applying?

You can apply for a mortgage from age 18 onwards.


Can I overpay on my mortgage?

Most lenders allow you to pay extra within a certain limit per year, often 10% of the outstanding balance. There are some mortgage products that allow you to make unlimited overpayments. When we meet or speak, we will discuss your requirements and match you to the most suitable product

What is an early repayment charge?

An early repayment charge applies if you pay more than the set overpayment allowance given or exit your mortgage deal early having repaid the mortgage prior to the product finishing.

When do I pay my deposit?

You transfer your deposit to the solicitor towards the end of the process, prior to exchanging contracts.

Can I take out a loan for all or part of my deposit?

No, you are not allowed to take out a loan to use as a deposit. The full amount must come from personal savings or schemes such as the government’s Help to Buy scheme or gifts from family members. You are required to provide evidence of where your deposit has come from

Sanjay Badhan
Managing Director
Future Planning