A purchase mortgage is a loan specifically designed to help you buy a property.

At Snow Financial, we specialize in connecting you with the right lenders and mortgage options that suit your unique needs and financial situation. Our expert mortgage brokers walk you through the entire process, ensuring you make informed decisions.

A purchase mortgage is a type of loan that helps people buy a home. With a purchase mortgage, the lender provides funds for the purchase of a property, and the borrower repays the loan over a set period of time. The amount of the loan, interest rate, and repayment terms will depend on a variety of factors, including the borrower's credit score, income, and the amount of the down payment. To apply for a purchase mortgage, you will need to provide documentation such as pay slips, tax returns, and bank statements. The lender will also require an appraisal of the property to determine its value. Once approved, the lender will provide the funds to purchase the property, and the borrower will make monthly payments to repay the loan.

Snow Financial works with over 90 lenders with access to over 1000 deals on the market. clients from a range of different scenarios and jurisdictions. We understand, therefore, that you are likely to be looking for support in obtaining the mortgage that you need and tying all your assets together. We work for our clients, using a bespoke approach to ensure that we obtain the best mortgage for your needs.

At Snow Financial, we specialize in helping our clients navigate the home-buying process and find the right mortgage product for their needs. Contact us today to learn more about our services and how we can help you achieve your dream of homeownership.

Lenders consider several factors when approving a mortgage, including your credit score, income, employment history, debt-to-income ratio, and the property’s value.

A strong financial profile improves your chances of approval and favourable terms.

Snow Financial works closely with our clients to gather necessary documents, pre-qualify you, and guide you through the approval process, increasing your chances of a successful application.

Absolutely! Snow Financial takes pride in assisting first-time homebuyers. We guide you through the entire process, explaining terminology, offering insights, and providing support to ensure your first home purchase is a seamless experience.

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Unlike residential mortgages, whereby the mortgage holder will likely be a permanent resident of the property, the owner is not usually permitted to live in a BTL; these types of mortgages are specifically designed for third party letting.

The majority of residential mortgages are repayment plans, which means you repay a portion of the loan and interest every month. Most UK BTL mortgages on the other hand are interest-only, so you’ll only be required to repay the mortgage interest each month. It also means you’ll need a plan for how you’ll settle the outstanding debt when the term ends.

Eligibility requirements are slightly different for BTL mortgages, with the most significant relating to the way affordability is calculated. For residential mortgages, this is based on personal income and expenses.

For BTLs, although lenders may factor personal circumstances into their calculations, the determining factor is based on the strength of the investment and projected rental income. As such, the majority of BTLs are not regulated by the Financial Conduct Authority (FCA).

How much you can borrow for a BTL mortgage usually boils down to the amount of rental income that you’re expecting to receive from the tenants of the property. Usually, the income needs to be at least 25-30% higher than what you’re paying for the mortgage.

Although there are lenders offering BTL mortgages with no borrowing limit, eligibility assessments are still stringent, and applicants are advised to acquire a rental income forecast from an ARLA-regulated letting agent.

Most mortgage providers have minimum projected rental return requirements. Your ‘rental ROI’ is calculated by subtracting the mortgage and running costs from the amount of projected rent, divided by the total amount of cash you invested to purchase the property.

Most lenders like to see a rental return of 125% or more, and they will stress-test this using your projected rental income and qualifying mortgage rate.

Rental yield refers to the amount of money you make on a BTL property by measuring the difference between your overall costs and the income you receive from letting it out. This is calculated by dividing the purchase price by the amount of yearly rent generated. A rental yield of 8% or more is generally viewed as a ‘healthy investment’.

As an example, if the purchase price of your property was £200,000 and your tenants pay £350 a week rent, the annual rent £18,200, making your property yield just under 11%

While the majority of buy-to-let mortgage providers base affordability on projected rental income, some will only agree to lend if you bring in a certain amount from other sources - regardless of whether you intend your investment to be self-funding.

We have access to over 90 lenders and can help find the right lender based on your circumstances including lenders that have require no minimum income

Deposit requirements for buy-to-let mortgages are far higher than residential ones, as they are considered a riskier investment.

The standard loan-to-value (LTV) for BTL is around 75-80%, which translates to 20-25% deposit - although some providers may be more generous for the right applicant. Likewise, if you pose a greater risk in other areas (e.g. bad credit or low rental yield), a lender may have higher deposit requirements to balance out the risk.

If you already own property but are struggling to save a sufficient deposit for a BTL mortgage, you might consider releasing some of the capital and putting it towards your investment. This can also be a good way of boosting your borrowing prospects.

Generally speaking, the more deposit you’re able to put down, the greater the lender pool and the more favourable the interest rates you’re likely to be offered.

While mortgage providers can be reluctant to lend to people with bad credit history, plenty of lenders are happy to take the bigger picture into account before coming to a decision.

The type of bad credit, how long ago it occurred and the circumstances surrounding it will impact which lenders are available, the type of products you qualify for, and under what terms. Depending on your situation, you may be asked to pay a higher deposit to offset the added risk, or you may be offered less competitive rates than someone with clean credit.

There are a number of variables at play, so if you have poor credit you’re best off contacting a Snow Financial broker who can explain your options and point you in the direction of lenders most likely to consider your application.

Most mortgage providers won’t lend to BTL borrowers unless they already own their own home, and some will stipulate that you have to have been a homeowner for over a certain amount of time.

Generally speaking, BTL mortgage providers favour customers with landlord experience, as evidence of a strong track record of managing rental properties will provide additional support to your application.

There are however some providers who are willing to consider BTL applicants that are first-time landlords or even first-time buyers, although you may be limited in your choice of lenders, and there could be caveats attached.

A remortgage describes a scenario in which you take out a new mortgage on a property that you already own. Remortgages account for about a third of home loans made in the UK.

For most people, a mortgage is the largest financial commitment they will have. In the same way that you might search for the best deal on a new car, it makes sense to review your mortgage periodically to make sure that it is still the right option for you.

Our friendly advisers have expert knowledge of the options available and can help you to review your individual circumstances and take any appropriate action.

Your current deal is coming to an end

If you have a fixed interest rate, tracker or discount mortgage deal at the moment, this will come to an end after a fixed amount of time. This will usually be between 2 and 5 years.

A good time to start searching for a new deal is shortly before your old deal is due to end so that you can take advantage of better rates as soon as possible. We recommend contacting 6 months before your deal is ending.

You have a standard variable rate (SVR) mortgage

When your fixed deal rate ends, you will normally be moved on to your mortgage provider’s SVR. This may be higher or lower than what you were paying before but it will change in line with the Bank of England base rate meaning that the certainty of knowing exactly how much your mortgage will cost every month will no longer be there.

If you are currently on an SVR, you may be able to save money by moving to a fixed deal. A move to a fixed deal can also help you to manage your monthly household bills as you will know exactly how much your mortgage payments will be for the lifetime of the deal.

Your property has significantly increased in value

If you have owned your property for a while, or market changes mean that it has increased in value quickly since you got your mortgage or last had your property valued, it may be worth seeing if you could get a better deal. If the current value of your home means that you are now in a different loan to value (LTV) bracket, it may be possible to get a lower rate of interest and reduce your monthly mortgage payments. Equity is the amount of the property you own debt free. The higher the percentage of equity in your property, the more likely it is that you’ll get a better mortgage rate.

You need to release equity from your home

If you have enough equity in your home, you may be able to remortgage it to release some equity to provide you with a lump sum. You will need to let your lender know why you want to remortgage to release equity. For example, to redecorate or remodel your home, build an extension or use the money to invest elsewhere, such as a buy to let. If you release equity from your home you will be increasing the overall mortgage value. The Mortgage Hut has a handy calculator to give you a guide as to how much you can borrow.

Yes, we help self-employed people remortgage all the time. It’s not impossible and there are good rates to be had, depending on your circumstances.

It pays to be prepared. The documents you may need include:

• Business Accounts - if you run your own business or are self-employed you should be able to provide three years of accounts. Some lenders will accept two and there are even those who will accept one.

• Tax Returns - 1-3 years of tax returns can be accepted by a lot of lenders. Some lenders will assess your income on your net profits and salary rather than your salary and dividends.

In short, yes. Some lenders specialise in providing mortgages for people approaching retirement age and older.

As long as the affordability requirements are met, there are plenty of options available. Lenders will usually have a set age that they require the loan to be paid back by, although there are a small number of lenders who have no age limit at all.

No! This is a myth because the interest rate isn’t the only thing that affects the overall costs of a mortgage. Think about your toes and the level of flexibility you might need concerning switching deals in the future. Remortgaging is a great way to save money but there can be fees involved and the cost of these can outweigh the benefit of a low rate.