FAQ

Check the frequently asked questions below or drop us a line for more information on info@premierfs.co.uk.

Is there a maximum age by which point lenders will insist I pay off my mortgage?

Mortgage are usually designed to finish no later than the borrower's normal retirement age. That age is taken as 65 for employed people (male and female) and 70 for the self-employed. Most lenders will consider a longer term providing the borrower has enough income after retirement.

Is there a "correct process" I should follow when looking to purchase a property?

Well, there is an IDEAL process but life is rarely that straightforward. Premier Financial Services have developed a range of flow charts that clearly diagram such an ideal procedure and we are happy to provide these to our clients during meetings. In our opinion people who are best prepared are those that put mortgage advice at the top of their list. Once you have taken advice you will not only be reassured as to your borrowing potential but will also have a clearer view on the expectations that will be put upon you by others. It will then become obvious when to deal with issues such as:

• When to market your own property for sale
• When to arrange the mortgage paperwork
• When to appoint a solicitor
• What type of Survey to have
• When to discuss the insurance options

Can I get a mortgage offer agreed in principle before I have found the property I want to buy?

Yes. There are a number of lenders that will provide an Approval In Principle. This can be helpful in getting the process going, but the lender won't make a formal mortgage offer until a valuation has been carried out on the property you wish to buy or remortgage.

Does Premier Financial Services offer advice on which is the best mortgage for me?

Yes. We offer a "whole of market" service. We are able to access details for all Major Lenders in order to provide information most relevant to your particular needs.

What is Buy to Let?

Buy-to-let deals are specialist mortgages designed for people who want to buy a property in order to let it out to tenants. Buy-to-let is becoming an increasingly popular way for private landlords to invest. They provide income from the tenant's rental payments and growth from any increase in the property's value. For more details please contact us.

Can Premier Financial Services help me find buildings and contents insurance?

It is an important form of protection but not something that we specialise in. We do have connections with General Insurance Brokers who will be happy to assist and we will be pleased to provide you with their contact numbers.

Are the deals that you can arrange different to those available from the banks and building societies direct?

No. The rates are the same. The benefit to you is that we take all of the effort out of searching for the right mortgage and can help you to understand all of the concepts related to the mortgage industry that one lender in isolation may not be able to convey.

You mention in your site that all initial advice is free of charge, so how do you earn your money?

Most lenders will pay us a fee for introducing your business. They see brokers as a valuable partnership to their business because we reduce their need to employ and train additional staff to the highest levels. They pass some of these savings back to us.If you purchase Insurance products we are usually paid a commission by the insurance company that we introduce you to.Sometimes a case is sufficiently complex that the fees earned from the above two sources are not sufficient to cover the time expended. In these rare circumstances we agree a fee with the client in advance before work is carried out.However we earn money, we will declare the source to you and as we promise.

ALL INITIAL CONSULTATIONS WILL ALWAYS BE FREE OF CHARGE AND WITHOUT OBLIGATION.

If I have a County Court Judgement (CCJ) or default against me, does that necessarily mean I will not get a mortgage?

Not necessarily. There are an increasing number of lenders who are sympathetic to past credit problems but each case is assessed on merit. We would suggest you contact us so that we can talk through your history and quickly assess how likely it is that you will qualify for finance.

What evidence do you need to confirm my identity and earnings?

Requirements vary from one lender to another. Typically though, the documents you might need to provide include: Three months' payslips; bank statements; proof of identity; proof of address; proof of deposit; existing mortgage statement (if applicable) and business accounts if you are self-employed. When we help you make your mortgage application we will ask you to send us the original information which we will either copy or send as originals to your chosen lender. Once finished with, these important documents will be returned to you.

Are my details protected under the Data Protection Act?

Yes. Both Premier Financial Services and the Lender you choose to borrow through are required to comply with the terms and conditions of the Data Protection Act. If you are not familiar with your rights and our responsibilities then please ask us for further information.

Your site is useful and credible but how do I know that I am dealing with a professional adviser?

Premier Financial Services takes our client responsibilities very seriously. We are authorised under the FSA (no: 303420) which is a body set-up to ensure the highest standards of advice and diligence. The company is headed up by Paul Hunter, who has himself been involved with the financial Services industry for almost 20 years and directly involved with Mortgage Advising since 1992.We operate a strict policy of providing clear advice at every stage of the house-buying process and provide all information in writing for your perusal. It is important to us that you feel happy with our company and the services we offer, your continued custom is our assured prosperity.

Should I consider a mortgage that carries early redemption penalties?

Most mortgages have redemption penalties. With fixed, capped and discount mortgages these penalties will usually last at least as long as the special rate but quite often they also apply after the special rate has finished. Mortgages with penalties extending beyond the special period are said to have an extended tie-in period. As a general rule, the cheapest initial interest rates will be available on mortgages with an extended tie-in period. This is because a lender can subsidise the rate if it is tying you in to paying a higher variable rate after the initial special rate. Likewise mortgages with redemption penalties during the special rate period only will normally have a lower rate than a mortgage with no penalties at all. Our advice for most people is to avoid a mortgage with an extended tie-in period. This allows you to keep your options open at the end of the special rate period to look for another deal without incurring what may be a very expensive penalty - which can be as much as 5% of the mortgage loan.

Can Premier Financial Services advise me on the best form of investment vehicle should I wish to use one in association with an Interest Only mortgage?

We do not arrange or advise on Investments but will be able to introduce you to an Independent Financial Adviser that specialises in such matters should you desire.

Do I need life cover when I buy a mortgage?

Some lenders insist you buy life cover but most do not. Most clients see value in insurance (lets be honest, we'd all have it if it were free) and we can help you look at a range of packages that offer the types of protection you are most interested in. We can provide quotes from most leading insurance companies for you to choose from.

Is it better to take the Lenders Buildings and Contents insurance or should I shop around?

Some lenders insist you buy their own house and contents cover as part of the mortgage deal. Others leave you free to shop around for your own policy. The DTI (Department of Trade and Industry) recently banned lenders making compulsory insurance a condition of a mortgage offer. However, whilst some lenders have stopped this practice others have got round the new rules by quoting two interest rates; a headline rate if you take their insurance and a dearer rate (usually about 0.25% higher) if you don't. Our advice would be to shop around unless you are really pushed for time in which case buying the Lenders own policy is certainly more convenient.

What is an Australian or "Aussie" mortgage?

It is a term used to describe flexible mortgages. These types of mortgage originated in Australia where interest has always accrued on a daily basis and many of the workers (who were paid on a weekly basis) found they could dramatically reduce their mortgage terms by setting just a little extra aside each week to the loan.

Will the lender I choose calculate my interest bill every day, every month or every year? Does it matter which they do?

Historically most lenders have calculated interest annually. This means that the interest you pay during a year is based on the amount of the loan that was outstanding at the beginning of that year. There is a growing trend towards Monthly or even Daily Interest accrual however which is very beneficial for those wishing to overpay the mortgage because the loan will be recalculated to take account of such overpayments that much quicker. Most Flexible mortgages calculate interest daily.