We know how it feels. There are times when not even speaking to a real person can beat a quick, instant answer to a question. Why call into a branch when the answer can be right there in front of you?
That’s why we’ve spoken to one of our mortgage advisers, put together a list of the most frequently asked questions from our customers, and laid them out below, just for you.
Buying a home is a big step and there’s a lot to consider.
Finding out how much you can borrow is a great place to start. It allows you to narrow down your search to the properties within your budget, ready for when the house hunt begins. You can find out how much you could borrow by visiting our mortgage calculator.
The quickest way to speak to a mortgage advisor who can potentially help you get on or move up the property ladder, or remortgage, is to Book an Appointment.
A mortgage is a loan, secured on a property, that is repaid with a predetermined set of payments over an agreed period of time.
The amount you could borrow will depend on your income, outgoings, property value, and how much you have available each month to pay back.
When looking to buy a property and take a mortgage out, you’ll need a deposit to put down. The minimum deposit needed can potentially be as low as 5% of the property’s value (dependent on the property you are buying and where you are looking to purchase).
To find out how much you can borrow and how much deposit you are going to need, you can make an appointment with one of our expert mortgage advisors who will be more than happy to guide you through the process.
We offer:
Fixed Rate Mortgages
With a fixed rate mortgage, your interest rate is fixed for an agreed period. During this period your monthly repayments stay the same so you know exactly how much you’re going to pay each month for a set amount of time. Even if interest rates go up, you will continue to pay the same amount each month, but if they drop your payments won’t fall. An arrangement fee may be payable and if you repay all or a significant part of your mortgage before the end of the fixed period, an early repayment charge is likely to apply.
Discount Variable Rate Mortgages
For a Discount Variable Rate your interest is a set percentage below our Standard Variable Rate (SVR) for an agreed period of time. If you have a variable rate mortgage your payments will go up or down whenever the rate it is tracking goes up or down. An arrangement fee may be payable and if you repay all or a significant part of your mortgage before the end of the discount period, an early repayment charge is likely to apply.
Repayment (Capital and Interest)
This type of mortgage involves repayment of the loan gradually over an agreed period. Each monthly payment you make consists of two parts, interest on the loan and repayment of part of the capital of the loan. Most of your monthly payment in the first few years simply covers the interest with only a small amount going towards repayment of the capital. The repayment part of your monthly payment will, however, increase as the mortgage term and the amount of the loan reduces. Provided you keep up your monthly payments the loan will be repaid at the end of the agreed mortgage period.
Interest Only
With an interest-only mortgage you make a monthly payment to us to cover the interest on the loan. Providing you keep up your monthly payments, the loan amount will remain the same and the interest is payable on the total amount of the loan for the whole of the mortgage period. To repay an interest-only mortgage you will need to ensure you have a suitable repayment strategy to pay off the mortgage at the end of the agreed term. During the application process, you will need to evidence a suitable repayment plan which is intended to repay the capital balance at the end of the mortgage term. We will make an assessment of the credibility of the repayment plan (e.g. endowment, ISA, pension, investment portfolio etc). We can advise during the application process of the information we will need to make this assessment.
The length of time it will take you to get a mortgage depends on several different factors including your circumstances, the property and legal procedures. Your mortgage advisor, on application, can give you an indication of how long it will take us to process your case.
Once you’ve found a property you love you will need to submit an application. During this process we will need to carry out a credit reference search, verify your income and identity, and a valuation will need to be carried out on the property to allow us to make a decision whether to issue a mortgage offer.
Once you have your mortgage offer, it is over to your solicitor to do the legal work. The timescale for the legal work does vary and your solicitor would advise you of timescales once you have your mortgage offer.
Procedures for buying a house in Scotland are different from the system in England and Wales so it is important to contact a conveyancer at an early stage for guidance. We have an approved panel of solicitors, so it is important to check that we can work with the solicitor you are instructing, [www.cumberland.co.uk/intermediaries/solicitors-panel please click here] to see whether your solicitor is on our panel.
If you are remortgaging some of our products have free standard legal fees if you are borrowing under £750,000. Standard legal fees do not cover everything, and we call anything that isn't covered non-standard. Loans above £750,000, transfer of equity, income booster mortgages, shared ownership, affordable homes and consolidation of two CBS mortgages are a few examples of work not included in standard legal fees, but for clarity the best thing to do is to speak to one of our mortgage advisors.
The amount you can borrow depends on your income, outgoings and individual situation. You can get an idea of what you could borrow with our Mortgage Calculator, but for more detailed figures speak to one of our mortgage advisors.
Once we have discussed how much you can borrow, we can give you an Agreement in Principle (sometimes called a mortgage in principle), showing how much we will lend you subject to assessment and satisfactory valuation. An estate agent might want to see your Agreement in Principle before they’ll let you put an offer in on a property, so this is a good place to start when you begin looking for your dream home.
The minimum deposit you need for a Cumberland mortgage is 5% of the property price, which would be a 95% mortgage. This is subject to lending criteria, property details and product availability at the time of application. It is always best to check with one of our mortgage advisors for the most up-to-date information on how much deposit you need.
We have a mortgage calculator available on our website which is a useful tool when looking at your different options for mortgage size, deposits, and what your future payments are likely to be. It’s worth remembering that the more that you can afford to put down for your deposit, the less you'll need to borrow from us and the less interest you’ll need to pay back.
It’s best to always check with one of our mortgage advisors for the most up to date information on the deposit you will need.
Some mortgage products may have arrangement fees to pay, but your mortgage advisor will be able to advise you on what options are available and whether paying a fee is the best option for you. There is no fee for our advice or service at any point throughout the mortgage process.
In addition to the deposit you may have an arrangement fee to pay, you will also have other expenses such as conveyancers’ fees (including registration fees and possibly stamp duty land tax), valuation fees (unless the mortgage product you have chosen includes a free valuation) and insurance costs. We will go through these with you so that you can work out how much you need to borrow.
We’re looking to see your wages coming in, and then any bills being paid on time. Ideally, we don’t want to see any missed payments, or the account going into an unauthorised overdraft, and gambling should be kept to an absolute minimum. We want to make sure that you are managing your money well.
Yes, we lend all over Great Britain, although some of our mortgages are only available in certain areas. Contact us to discuss your circumstances.
You can book an appointment either in-branch or over the telephone by using the link here: Book an Appointment.
Our minimum loan amount is £20,000 for residential applications, subject to lending and product criteria, and the minimum term for a mortgage is 2 years.
An overpayment is any amount you pay towards your mortgage, in addition to your contractual monthly payment. This does not include additional payments made to clear arrears on your account.
Whilst you can make overpayments to your mortgage account at any time it’s important to note that there may be an early repayment charge unless these overpayments are within the yearly limit documented in your ‘Offer of Loan’.If, during the term of your loan, you make an additional lump sum payment of £500 or more over and above your normal monthly payment, we can calculate a reduced monthly payment for you. However, you must tell us when making the payment.
Please note that your monthly payment will automatically be recalculated if you reach the yearly limit for overpayments or there is another change on your account which means we need to recalculate your monthly payment, for example a change in interest rate.
When you apply for a mortgage with us, we will need to see some documentation to prove your identity: who you are and where you live, how much you earn and if applicable, how much of a deposit you have and where the money came from.
You will need to provide:
If you are self-employed, you will need to be self-employed for a minimum of 2 years and be able to provide your last 2 years SA302s.
If you have other income you would like to use to use in your application, for example working tax credits, child tax credits, disability allowance, pensions or maintenance, your mortgage advisor will advise of exactly what we need from you depending on your individual circumstances.
Each application does vary and your mortgage advisor will advise you on exactly what’s needed when you make an application with us.
Most lenders work on credit score, but here at The Cumberland, we don’t just consider your credit score, we look at each person’s credit file individually. Each application is individually underwritten, and it is never just ‘computer says no’.
Having no previous credit isn’t an issue at The Cumberland, and we will consider a mortgage for you if you’ve never had credit before.
When taking out a mortgage, there are a couple of different insurances you’ll need to consider.
It is a condition of your Cumberland mortgage offer that you have adequate buildings insurance in place from the start of the mortgage.
We also recommend that you consider life & critical illness cover when you are taking out a mortgage. This offers reassurance that should you die or become seriously ill during the mortgage term that adequate cover is in place to support you or your family at that time.
Our mortgage advisors will discuss both home and life and critical illness cover with you as part of the mortgage process.
If you're an existing borrower with The Cumberland and you wish to move home, we can look at ‘porting’ over your existing mortgage to your new home. Porting is subject to terms and conditions mentioned in your original mortgage offer. Our mortgage advisors can give you more information regarding porting your existing mortgage, and you can book an appointment here to discuss it further.
There are a number of reasons why you should consider remortgaging.
Remortgaging could save money on your mortgage payments, and ensure you are getting the best deal available to you.
If you’re paying your lender’s standard mortgage rate (SVR) and you’ve still got a few years left on your mortgage, you could save money by reducing your monthly payments.
If it’s been a few years since you took your mortgage out, it’s possible your property has increased in value while you’ve been paying your mortgage off. If you have a small mortgage and a property that’s worth more you may be able to get a better mortgage deal.
If you know roughly what your property is worth, have a look at our mortgage calculator to see what deals are available to you. If you’re not sure, give us a call on 01228 403141.
To borrow more you will need to have some equity in your property, i.e. your mortgage is less than 90% of the value of your property, you may be able to release some of the money tied up in your property up to a maximum of 90 %. Find out what your monthly payments may be with our mortgage calculator, or give us a call on 01228 403141.
Our remortgage deals include free standard legal fees through our nominated solicitor (subject to terms and conditions) and a free standard valuation*. Depending on the product you choose, you might need to pay an arrangement fee and a £20 funds release fee. Standard legal fees do not cover everything; we refer to these uncovered aspects as non-standard. Examples of non-standard work include loans above £750,000, transfer of equity, income booster mortgages, shared ownership, affordable homes, and consolidation of two CBS mortgages. For clarity, it's best to speak with one of our mortgage advisors.
These offers apply to remortgage products up to 90% loan to value (LTV), and up to 75% LTV in London and Southeast England.
When looking to remortgage, we recommend getting in touch at a minimum 3 months before your current deal ends. This is to ensure, subject to a successful application, that we have enough time to issue your new mortgage offer , and do the legal work involved with the remortgage. Our mortgage advisors will be on hand to help you all the way through the remortgage process and talk you through what products we are able to offer you, subject to a successful application.
Our mortgage calculator is a great tool and can give you an idea of what you can borrow and how much it will cost you each month.
Each remortgage is different, but normally remortgages take a minimum of 1-3 months to complete (this covers both you receiving your mortgage offer and completion of the legal work involved with remortgaging). To ensure we have plenty of time for the remortgage to be processed, we recommend getting in touch at a minimum 3 months before your current deal ends.
Yes, we do offer free standard legal services through our society-nominated solicitor, as well as free valuations when remortgaging, on loans up to £750,000 (subject to terms and conditions)." Standard legal fees do not cover everything, and we call anything that isn't covered non-standard. Loans above £750,000, transfer of equity, income booster mortgages, shared ownership, affordable homes and consolidation of two CBS mortgages are a few examples of work not included in standard legal fees, but for clarity the best thing to do is to speak to one of our mortgage advisors.
Yes, maximum age limits apply to our mortgages.
For interest-only lending, the oldest applicant must not exceed the age of 81 at the end of the mortgage term.
For capital and interest (repayment) lending, the oldest applicant at the date of the application must not exceed the age of 86 at the end of the mortgage term.
Enter your details into our product selector to view the mortgages available to you.
Yes, we’ve helped many people who want to support family members by helping them save for a house deposit or paying their university fees, for example.
You can use your funds for lots of purposes – not just home improvements.
The minimum borrowing amount is £20,000. The total of your existing loan and your new application must be no more than 70% of the value of your home if you are already retired.
For lending in retirement, the best thing to do is book an appointment to speak with one of our advisor mortgage advisors who will be more than happy to discuss your options.
To evidence your income in retirement, we need your last 2 months bank statements so that we can highlight your pension income. We may also need some additional supporting documents as we assess each application individually, but your mortgage advisor would let you know what extra was needed.
As we do not offer specific ‘retirement’ mortgages, timescales would be similar to those of house purchase or remortgaging. If you are retired , we would be able to consider using pension income rather than salary when considering your application.
The length of time it will take you to get a mortgage depends on several different factors including your circumstances, the property and legal procedures.
Once you’ve found a property you love and you’ve had an offer accepted, it normally it takes roughly 3-4 weeks to issue your mortgage offer. This gives us time to check over all your documents, do a credit search, see if you can afford the repayments, and do a valuation on the property you are purchasing to check that it is suitable for a mortgage.
Once you have your mortgage offer, it is over to your solicitor to do the legal work. The timescale for the legal work does vary, but it normally takes roughly 8- 12 weeks. Your solicitor would advise you of timescales once you have your mortgage offer.
You will need to instruct a solicitor to handle the legal work (procedures for buying a house in Scotland are different from the system in England and Wales so it is important to contact a conveyancer at an early stage for guidance). We have an approved panel of solicitors, so it is important to check that we can work with the solicitor you are instructing, please click here to see whether your solicitor is on our panel.
In the case of remortgaging, each remortgage is different, but they normally take a minimum of 8-12 weeks to go through (this is both your mortgage offer and the legal work involved with remortgaging). To ensure we have plenty of time for the remortgage to be processed, we recommend you get in touch roughly 6 months before your current deal ends to explore your remortgage options.
Our mortgage calculator is a great tool and can give you an idea of what you can borrow and how much it will cost you each month.
To evidence self-employed income, we use an average of your last 2 years SA302’s. These show us the income that you paid tax on for the last 2 tax years, which is the income we can use to support the mortgage application.
As well as your last 2 years SA302’s, we also need your last 2 months business bank statements.
In some circumstances, we may need your last 2 years certified year end accounts in addition to the above. If you don’t produce certified accounts, we may need a copy of your full tax returns.
Your mortgage advisor would let you know the documentation they would need to verify your income during the application process.
The self-employed figure we can use to support mortgage affordability is your drawings (the income you have paid tax on). We normally use an average of the last 2 years drawings, as long as the company has been trading for at least 2 years.
Most lenders work on credit score, but here at The Cumberland, we don’t just consider your credit score, we look at each person’s credit file individually. Each application is individually underwritten, and it is never just ‘computer says no’.
Having no previous credit isn’t an issue at The Cumberland, and we could consider a mortgage for you if you’ve never had credit before.
Customers with shareholding of ≥25% (includes joint customers & immediate family members).
Yes, as long as the self-employed applicant can evidence their income, meet lending criteria, and jointly afford the mortgage repayments for the length of the mortgage term. As with all joint loans both applicants are responsible for the repayments.