As contractor mortgage and freelancer mortgage specialists, it’s in our job description to know all there is to know about the industry in which we work.
The Roots Mortgages team always keeps its finger on the pulse when it comes to mortgages, and our years of expertise helps our clients get the mortgage they dream of.
Fairly frequently, we get questions about certain terminology or concepts that exist within the mortgage industry. We are always happy to help answer questions and offer free mortgage advice to help inform and educate mortgage applicants where necessary.
To assist further with this, we have put together an A-Z guide to some of the common (and not so common) terms used in this business. Read on to find out more!
A is for Affordability. This is the link between your finances and the specific or type of property you are interested in purchasing. You need to demonstrate affordability to a lender in order to secure a mortgage.
B is for Buyer. This is likely you, as you may well be on the hunt for a house you can buy and then call your own. Don’t worry, we’ll tend to call you by your first name though (if you are happy for us to!).
C is for Contractor mortgage. Contractors typically have to jump through some additional hoops to prove their financial strength. This means specialist contractor mortgages can differ slightly from traditional mortgages.
D is for Deposit. You will need one of these to secure a mortgage. A deposit is a financial sum you pay in order to take a chunk off the cost of your home before you start your regular mortgage repayments. The higher your deposit, the more expensive the property you can realistically look to buy.
E is for Estimations. Making your own estimations early in the mortgage process can give you a rough idea of what kind of deal and property you can afford. This can change over time, but some early planning is never a bad idea.
F is for Freelancer mortgage. Freelancers and contractors can differ slightly, so a freelancer mortgage is one dedicated specifically to freelancer workers.
G is for Guides. Roots Mortgages offers a host of dedicated guide content that can help you scrub up your knowledge on specific subjects related to the mortgage industry.
H is for Home Movers. Moving home can be stressful, but with the right guidance can certainly be a really positive thing. You can read our Home Mover Mortgage Guide here.
I is for Insurance. Working as a contractor requires various forms of insurance to be in place. You might not know Roots also offers contractor insurance, so find out more and see if we are a good fit for you.
J is for Just £1 more. Interestingly, putting down an additional £1 could be the difference between you receiving a mortgage and not, or receiving a better mortgage offer. This guide explains all.
K is for Keeping your options open. By using a specialist contractor mortgage broker, we can help keep your options open and find that perfect deal for you. We search objectively for this, meaning you won’t find yourself heading down a single path without it being the right one.
L is for Lenders. These are the guys who will be supplying the money to buy your home with. Securing the right lender who you can pay back in an affordable and sustainable way is the crux of the mortgage business.
M is for Mortgage calculator. Roots Mortgages has its own mortgage calculator tool to help give you a rough idea of what you might be able to afford.
N is for Newbie. If you are a complete newbie to the world of contractor mortgages, do not fear – we were all in that boat at one point! The Roots team is able to offer support regardless of your base knowledge and can help you find the deal you want.
O is for Ownership. Being able to say you are a home owner is what many people strive for. That status might not be as far away as you think.
P is for Partnership. If you are a business within the mortgage industry, you can partner with Roots Mortgages to help ensure you and your customers benefit from our expertise and specialist services. Take a look at our Introducers page to learn more.
R is for Residential mortgage. While we specialise in contractor and freelancer mortgages, we also offer residential mortgage support for people who perhaps work in more ‘traditional’ forms of employment.
S is for Stamp duty. Any regular visitor to our site will no doubt have read plenty about stamp duty. After a brief hiatus, this is back and will be something new mortgage applicants will have to factor in when sorting their mortgage deal.
T is for Technicalities. The mortgage industry can contain some fairly tricky jargon at times. This blog might have helped clarify some for you, but if there is a term you do not know the meaning of at any point, simply ask our team to explain all.
U is for Underwriting. Every mortgage needs a mortgage underwriter to give it the green light before it goes through. Affordability and feasibility are determined at this stage, so it’s not to be underestimated. Your prospective lender will have an underwriter who will review your application, so be sure yours is in as good of a shape as possible before this stage takes place.
X is for eXactly the home you want. Yeah, sorry about that. There’s not really any terms that begin with X in the mortgage world. Having exactly the home you want is a good thing though!
Y is for Your credit score. This will play a big factor in whether or not the underwriting stage is good for you. If yours isn’t the best, here are 7 things you can do to improve it.
Z is for Zzzzz. This is the sound you will make when sleeping soundly in your new home once everything is done and dusted. Getting a mortgage sorted can be a pretty stressful and daunting experience. But with the right support and right broker by your side, you can be in your dream home sooner rather than later.