Question 1

What does a mortgage advisor do?

Accepted Answer

A mortgage advisor compares deals across the whole market, guides you through the application process, handles all paperwork, liaises with lenders on your behalf, and helps secure the best possible rate for your circumstances.

Question 2

How much does a mortgage advisor cost?

Accepted Answer

Opus Mortgage & Protection charges a standard broker fee of £499, payable on offer. There are no upfront fees for bridging finance cases. We may also receive commission from lenders — this has no impact on your monthly payments and is fully disclosed.

Question 3

Do I need a mortgage broker or can I go direct to a bank?

Accepted Answer

Going direct limits you to that bank's own products. A whole-of-market broker checks 200+ lenders — including specialists you cannot access directly — and often secures rates, criteria or product transfers that high-street branches will not offer.

Question 4

What documents will I need to apply?

Accepted Answer

Proof of ID (passport/driving licence), 3 months of bank statements, 3 months of payslips (or 2 years of SA302s and tax overviews if self-employed), proof of address, and details of any credit commitments. We provide a full checklist tailored to your case.

Question 5

How long does the mortgage application process take?

Accepted Answer

Agreement in Principle: 24–72 hours. Full mortgage offer: typically 2–4 weeks once documents are submitted. Completion depends on solicitors and any chain, but 8–12 weeks from application to completion is normal for residential purchases.

Question 6

Can I still get a mortgage with poor credit?

Accepted Answer

Yes. We work with specialist adverse-credit lenders who consider CCJs, defaults, missed payments and arrears. Rates are higher than the high street and a larger deposit (often 15–25%) is usually required, but approvals are possible where high-street banks decline.

Question 7

Should I remortgage now or wait until my fixed rate ends?

Accepted Answer

Most lenders let you secure a new rate 3–6 months before your current deal ends. If rates are rising, locking in early protects you. If they are falling, waiting may be better. Our free Rate Watch service monitors the market for you.

Question 8

How much deposit do I need for a buy-to-let mortgage?

Accepted Answer

Most BTL lenders require a minimum 25% deposit. The best rates typically sit at 40% deposit (60% LTV). Specialist HMO or holiday-let lenders may require 30–35%.

Question 9

What rental income do I need to qualify for a BTL mortgage?

Accepted Answer

Lenders use a rental stress test, typically requiring rent to cover 125–145% of the mortgage payment at a stressed rate of 5.5–8%. Higher-rate taxpayers and limited company applications often use 125%, while personal-name higher-rate cases use 145%.

Question 10

Can I get a buy-to-let mortgage as a first-time landlord?

Accepted Answer

Yes. A smaller number of lenders accept first-time landlords, usually requiring you to already own your own home, meet a minimum income (often £25k+), and put down a 25% deposit. We know which lenders welcome first-time landlords.

Question 11

Are buy-to-let mortgages regulated by the FCA?

Accepted Answer

Most BTL mortgages are unregulated business loans. Consumer buy-to-let (where you did not originally buy the property to rent out — e.g. an accidental landlord) is FCA-regulated.

Question 12

Should I buy in my personal name or through a limited company (SPV)?

Accepted Answer

Higher-rate and additional-rate taxpayers usually benefit from purchasing through a limited company SPV because full mortgage interest is deductible and profits are taxed at corporation tax rates rather than income tax. Basic-rate taxpayers often still prefer personal name for simplicity. Take tax advice for your specific situation.

Question 13

What is bridging finance and how does it work?

Accepted Answer

Bridging finance is a short-term secured loan (typically 1–24 months) used to 'bridge' a funding gap — for example, buying a new property before selling your current one, purchasing at auction, or funding refurbishment before refinancing to a standard mortgage.

Question 14

How quickly can bridging finance be arranged?

Accepted Answer

Regulated bridging typically completes in 2–4 weeks. Unregulated bridging can complete in as little as 5–10 working days for well-prepared cases. Auction purchases needing 28-day completion are a common use case.

Question 15

How are bridging finance interest rates quoted?

Accepted Answer

Bridging rates are normally quoted monthly and vary by loan-to-value, property type, exit strategy and borrower profile. We provide the current rate, lender fee and total projected cost together before you proceed.

Question 16

Do I need to make monthly payments on a bridging loan?

Accepted Answer

Not necessarily. Interest can be paid monthly (serviced), rolled up (added to the balance and repaid on exit), or retained (deducted from the loan advance at drawdown). Retained and rolled-up are common when the property is not yet income-producing.

Question 17

What is the maximum LTV for bridging finance?

Accepted Answer

Up to 75% LTV on standard cases, and up to 100% with additional security (such as another unencumbered property). Development exit and refurbishment bridging can go higher against the Gross Development Value.

Question 18

Are there upfront fees for bridging finance?

Accepted Answer

At Opus Mortgage & Protection we do not charge upfront broker fees on bridging cases. Lender arrangement fees (typically 1.5–2% of the loan) and valuation fees still apply and are usually added to the loan or paid on completion.

Question 19

What is an SPV mortgage?

Accepted Answer

An SPV (Special Purpose Vehicle) mortgage is a buy-to-let loan made to a limited company set up specifically to hold rental property. The company (usually with SIC codes 68100, 68209 or 68320) is the borrower, not you personally, though directors give personal guarantees.

Question 20

Why do landlords use SPVs for buy-to-let?

Accepted Answer

Section 24 restricts personal-name landlords to a 20% tax credit on mortgage interest, meaning higher-rate taxpayers effectively pay tax on gross rent. Inside an SPV, full mortgage interest is a deductible expense and profits are taxed at 19–25% corporation tax rather than 40–45% income tax.

Question 21

How much deposit do I need for an SPV mortgage?

Accepted Answer

SPV BTL lenders typically require a 25% deposit (75% LTV), with the sharpest rates at 60–65% LTV. Rates are usually 0.2–0.5% higher than personal-name BTL but the tax saving generally outweighs this for higher-rate taxpayers.

Question 22

Can I transfer existing personal-name properties into an SPV?

Accepted Answer

Yes, but it counts as a sale to the SPV — triggering Stamp Duty (including the 5% surcharge), potential Capital Gains Tax, and legal costs. Incorporation relief may apply if the portfolio qualifies as a business. Take specialist tax advice before transferring.

Question 23

Do SPV mortgage lenders require personal guarantees?

Accepted Answer

Yes, virtually all SPV BTL lenders require personal guarantees from all directors (and any shareholder with 20–25%+ ownership), meaning you remain personally liable if the SPV cannot pay.

Question 24

Can I get a mortgage as a CIS contractor?

Accepted Answer

Yes. Specialist CIS-friendly lenders assess affordability on your gross weekly or monthly CIS earnings (usually averaged over the last 3–12 months of payslips or remittance advices), rather than requiring 2–3 years of self-employed accounts.

Question 25

How is CIS income calculated for a mortgage?

Accepted Answer

Contractor-friendly lenders take your gross day rate or gross weekly CIS earnings and annualise it — for example, day rate × 5 × 46–48 weeks. This usually produces a significantly higher borrowing figure than net self-employed profits on your tax return.

Question 26

How long do I need to have been on CIS to qualify?

Accepted Answer

Some specialist lenders accept as little as 3 months of CIS payslips plus a signed contract; most prefer 6–12 months of consistent contracting history. Time in the same trade before switching to CIS can also count towards experience.

Question 27

Do I need 2 years of accounts for a CIS mortgage?

Accepted Answer

No — that is one of the biggest myths. With the right lender you can qualify on gross CIS earnings even with less than 2 years of tax returns, provided you have consistent recent income and evidence of ongoing contracts.

Question 28

What deposit do CIS mortgage applicants need?

Accepted Answer

5–10% deposit is possible with specialist lenders on residential CIS cases, though 10–15% widens your lender choice and improves rates. Buy-to-let CIS applications typically require 25%.

Question 29

Do I need life insurance to get a mortgage in the UK?

Accepted Answer

Life insurance is not a legal requirement, and most lenders no longer insist on it. However, taking out a decreasing term policy for the mortgage term is strongly recommended so your family can clear the mortgage if you die during the term.

Question 30

What is the difference between level term and decreasing term life insurance?

Accepted Answer

Decreasing term reduces cover over time in line with a repayment mortgage — cheaper and designed to clear the outstanding balance. Level term keeps a fixed lump sum for the whole term — used for interest-only mortgages and family protection alongside the mortgage.

Question 31

How much life insurance do I need as a homeowner?

Accepted Answer

As a minimum, cover equal to your outstanding mortgage balance. For full family protection, most advisers recommend 10× annual salary of the main earner, plus separate cover for childcare, education, and any additional debts.

Question 32

What is critical illness cover and do I need it as well as life insurance?

Accepted Answer

Critical illness pays out a tax-free lump sum on diagnosis of a serious specified illness such as cancer, heart attack or stroke. Statistically you are more likely to suffer a critical illness during your working life than to die before retirement — most advisers recommend both together.

Question 33

Can I get life insurance as an expat or with pre-existing conditions?

Accepted Answer

Yes. Specialist protection insurers underwrite expat lives, complex medical histories, and hazardous occupations. Terms and premiums vary widely — we compare providers to find the right cover for your circumstances.

Mortgage & Protection FAQs

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General mortgage questions

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