Frequently asked questions
Frequently asked questions
You’ll find answers to the questions we get asked the most about here. Our friendly advisors are also available to talk through any other queries you may have.
Common mortgages questions
Mortgages are used to buy a home or to borrow money against the value of a home you already own. A bank or lender loans the money with interest and, in return, the loan is secured against the value of a person’s property.
Mallory Finance Limited is an example of a mortgage broker. Brokers are specialists mortgage advisers who will look for a mortgage on a client’s behalf to ensure they get the most suitable fit in terms of the borrower’s financial situation and interest rates. There may be a fee for mortgage advice.
The team at Mallory Financial Limited will take you through your income and outgoings to understand your financial situation. The amount you can borrow will be dependent on these factors and different mortgage options will be discussed with you.
At Mallory Financial Limited, we have access to a large number of lenders, many of which are not found on the high street. We will spend time researching the market to ensure the mortgage offerings suits your needs and situation. Find out more about the different mortgages available HERE.
Our aim is to make sure you get the right mortgage offer for your needs. To achieve this, our FCA regulated advisors will guide you through the process step-by-step.
Loan to value (LTV) is the ratio between the value of the loan you take out and the value of the property as a whole, which is expressed as a percentage. For example, if you borrow £200,000 to purchase a property valued at £250,000 then the LTV is £200,000/£250,000 = 0.8 or 80%. The remaining 20% is your equity.
An Agreement in Principle (or AIP) is the first step to getting a mortgage. It lets you know how much you can borrow so you can look at homes in your price range. When you apply for an AIP, the lender will check your credit file to establish whether you’re eligible to borrow from them and if they’re happy to lend you the amount you need.
An ‘Agreement in Principle’ can also be known as a ‘Decision in Principle’ or ‘Mortgage Promise’.
Yes, this is possible. However, it is important to remember that you are transferring unsecured debt to debt secured against your property and so your home may be at risk if you fail to keep up with your monthly payments. Our advisors can help you with this and advise accordingly.
Yes, our advisors are available for telephone appointments in the evenings and at the weekends and will work with the individual to arrange a time and day to suit.
Different mortgage scenarios
Bad (adverse) credit may not prevent you from getting a mortgage. At Mallory Financial Limited, our experienced team of advisors will be able to guide you through the different options available to you, working with lenders who are happy to work with clients who have a less than perfect credit history.
Yes, our advisors have a wealth of experience in buy-to-let mortgages and will be able to take you through the process step-by-step.
Under the right circumstances, it is possible to find a mortgage lender who will approve your application. The amount will depend on various factors, our advisors will walk you through the process step by step.
If you are looking to switch your mortgage to a new lender and you are still within your original mortgage rate, you could be faced with an early repayment charge. Our advisors can help guide you through your possible options.
Yes, it is possible. Your personal circumstances will be taken into account when looking for a lender. However, every situation is different and our advisors will help guide you through your options.
Yes, your bonus may be taken in to account when applying for a mortgage. How this is done will depend upon the lender, whether the bonus is guaranteed and how much you’ve earnt in bonuses previously. This is similar to commission payments. Whatever your financial situation, our advisors will look at all options in order to help you.
Yes, it is possible to borrow based on 1 year of accounts in some circumstances. However, there is more choice when you have been trading for 2 years. The team at Mallory Financial Limited can advise you dependant on your individual situation.
Common secured loan questions
A secured loan is a type of loan that enables a homeowner with a mortgage to potentially borrow more money by using their home as collateral. Secured loans can also be known as homeowner loans or security loans.
Secured loans use a valuable asset as security, usually your property. This means there is less risk to the lender and you may be able to secure bigger loans and lower interest rates. There is also the option of a longer payback period meaning you’ll pay more interest but your monthly repayments will be lower.
A secured loan requires careful consideration as you risk losing your home if you can’t make the repayments. It can also negatively affect your credit score. When considering a secured loan, always think carefully before you commit as your circumstances might change in the future. The advisors at Mallory Financial Limited will be able to discuss your financial situation with you and walk you through your options.
Using a property as collateral means you can borrow more than you would normally be able to. However, the amount will depend on a few factors including: the value of your home, the amount of equity and your financial history.
The good news is that, if you have a poor credit rating, it can still be possible to get a secured loan. Providing your property as security presents the lender with less risk as the property could be repossessed if you are unable to keep up with loan payments.
A secured loan uses an existing asset to secure the loan against – usually your property. The loan tends to be for larger amounts, over a longer period of time and the interest rates can be lower.
An unsecured loan does not need an asset to secure the loan against. The amount that can be borrowed tends to be less and over a shorter period of time. The interest rates also tend to be higher than a secured loan due to the additional risk involved.
If you are a homeowner, it might be worth considering remortgaging as a means of accessing a larger amount of money. However, this will depend on a number of factors including your credit record, the value of your property and how much equity you have.
At Mallory Financial Limited, we can search the market for deals suited to you and improve your chances of securing the right finance.
Common questions about protection insurance
Life insurance
Life insurance protects those closest to you ensuring they are looked after if you die. Dependant on the type of life policy a cash lump sum is paid out to settle any outstanding debts, such as a mortgage or credit card.
At Mallory Financial Limited, we have a team of experts who can help ensure that you have the right life insurance in place if this were to happen.
There are lots of factors taken into consideration when determining premiums including the size of the sum insured, the risk of the claim (e.g. if you have a dangerous job), your age, health, occupation, lifestyle etc.
Term policies are the most common type of insurance and only pay out if you die within the duration of the policy. For example, if you take out a term life policy for 25 years, your family can claim if you die within the 25-year period. However, if you die after this term there will be no pay out.
Your own age will have an impact on the length of the term as well as other factors e.g. how long your mortgage payments last for, how old your children are and if you want the policy to expire after your children leave school or university.
Mallory Financial limited has a team of specialist life insurance advisors who can pull all these factors together and source a solution that is right for you.
This can be different for each family and will depend on your personal circumstances. Larger families who have a big mortgage will need more cover than a single parent with one child living in a flat with a smaller mortgage.
Mallory Financial Limited has the knowledge and expertise to discuss the different options with you enabling you to select a policy that’s right for you.
The answer to this is no. However, if the worse happens, the consequence of not having life insurance and your family not being able to afford the repayments on the mortgage could result in them being forced to sell their home.
Having a pre-existing medical condition might make finding life insurance more difficult and could cost more, but this doesn’t mean that you can’t be covered. Insurers are likely to ask for medical information to ascertain the condition and the severity and will consider this amongst other factors including your job, your weight and height and if you are a smoker.
Critical illness cover
If you are diagnosed with a critical illness (such as a heart attack or cancer) you may need to take time off work and your family would need additional support. If this was the case, a tax-free lump sum would be paid out providing immediate security and peace of mind for everyone involved.
You can decide on the length of the policy as it can be different for everyone. Many people choose to have the cover until their kids have flown the nest, after they’ve been to university, until the mortgage is paid off or when retirement is reached.
Critical illness cover tends to include all the main illnesses including heart attack, stroke, cancers, kidney failure etc. Different plans can cover many more illnesses and can even include cover tailored to your children.
Critical illness pay-out is tax free and follows an assessment of your situation. As long as all the terms and conditions of the policy are met then the lump sum will be paid directly in to your chosen bank account.
Income protection
Income protection is a way of safeguarding your income and your home if you can’t work due to sickness and injury. It works so that you continue to receive a monthly income until you are ready to go back to work. However, income protection does not cover for lost pay if you are stood down or you become unemployed.
The amount of cover can vary from policy to policy. Typical cover includes serious illness (like cancer, heart attacks and strokes), injuries caused by an accident, depression, mental health conditions and long-term back pain. However, it won’t cover you if you die.
This type of cover can provide more sufficient, longer-term protection than employer or statutory sick pay. It can also protect your savings and other assets and potentially avoids having to rely on other income or family support to get by. Having income protection is often worth it for the peace of mind it provides – which can outweigh the monthly cost.
If you don’t have income protection insurance and you lose your income through injury or illness, you are living with the risk of not being able to keep up with your lifestyle costs.
Having income protection, gives you peace of mind that, if you are unwell, you will be able to keep up with the cost of living providing security for yourself and your family.
Dependant on what type of cover you have, a regular income is paid and continues to be paid in to your bank account until you return to work or you retire. Having income protection provides a more sufficient, longer-term solution than sick pay and avoids using up your savings and/or assets.
Unfortunately, a surprising number of people become ill or injured every year and many of those face the worry of keeping up with every day household expenses due to not having the right policy in place. With income protection, you have the reassurance that you are covered which can outweigh the cost of the insurance.
Income protection and critical illness cover are both insurance policies that cover you in case of illness. However, which one is right for you will depend on your circumstances. One of the benefits of income protection is that it pays out if you can’t work for any medical reason and not just a list of pre-specified illnesses. It also pays you a monthly amount to maintain a steady income, rather than giving a lump sum.
The cost of income protection will vary dependant on a number of factors including the level of cover you want, your individual circumstances and how much time passes before you start receiving your pay out. The team at Mallory Financial Limited can discuss different options with you, ensuring you get the cover that best suits you taking in to account the affordability of the monthly premium.
No, there is no legal requirement to take out income protection insurance although it is a policy that everyone should consider when buying a new property. Without income protection, you will be faced with the pressure of keeping up with mortgage repayments and you may lose your home if you don’t keep up.
Common questions about business protection
Business and stakeholder protection is a type of insurance that provides business owners with peace of mind if a shareholder dies or becomes critically ill. It ensures the necessary financial security is in place and is available to shareholders, sole traders and key employees.
Having this type of financial protection provides a business with certainty and stability and is vital to enable it to recover quickly should the worst happen. Business protection can help ensure that key individuals are replaced, debt is protected and shares from the deceased are purchased by the company.
It provides a binding agreement between shareholders that ensures the shares remain within the business when a shareholder passes away. It mutually benefits both parties as it allows the other shareholders to buy back the shares from the family and for them to receive the monetary support from the value of the shares.
The loss of a key stakeholder within a business can cause huge disruption, uncertainty and stress, especially if it happens unexpectedly.
The benefits of this insurance is to help your business and the family affected maintain financial stability during a difficult time. It means that the remaining business owners keep control of the firm and there is a smooth transition of shares between parties. This keeps internal business disruption to a minimum and secures the ongoing effectual running of the business. Without a policy like this in place, there is a risk of the shares being inherited by an unwelcome family member or beneficiary or the shares being sold to a rival company.
There are a variety of ways this type of cover can be set up and so it’s always advisable to seek advice from business protection experts. At Mallory Financial Ltd, we can ensure that the right policies are implemented correctly and that the process runs smoothly, benefiting everyone concerned.
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get in touch today
We are here to help
At Mallory Financial, whether you’re looking for a mortgage, protection or a secured loan, we have specialist advisers to support you.
Contact us now to arrange an initial chat so that we can find the best way to help you.
get in touch today
We are here to help
At Mallory Financial, whether you’re looking for a mortgage, protection or a secured loan, we have specialist advisers to support you.
Contact us now to arrange an initial chat so that we can find the best way to help you.
