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General mortgages FAQs

What is a mortgage?

A mortgage is a secured loan that enables you to buy a property.

We offer a range of mortgages including owner occupied mortgages where you are going to live in the property you are buying as well as buy to let mortgages.

What is the difference between a fixed rate and variable rate mortgage?

A fixed rate mortgage means you fix the interest rate of your mortgage for an initial period. After the fixed rate ends your mortgage will go onto a variable rate.

Fixing your mortgage means your mortgage payments are guaranteed to remain the same for the fixed term.

Once you are on a variable rate your mortgage payments may move in line with market conditions, therefore your payments could go up or down

What is the difference between an interest only and a repayment mortgage?

With a repayment mortgage you pay off both the interest and capital with each monthly payment. This means at the end of the term your mortgage will be repaid.

With an interest only mortgage you only pay the interest each month and the amount of capital owed will not reduce.

This means you need to have suitable plans in place to pay off the mortgage at the end of the term. You could use sale of the mortgaged property, cash, stocks and shares, an endowment policy or pension.

What does LTV mean?

LTV or loan-to-value is the value of the mortgage compared to the value of the property expressed as a percentage. For example, if you have a 5% deposit you will need a 95% LTV mortgage.

What is APRC?

The APRC is the Annual Percentage Rate of Charge and is the overall cost of the mortgage including interest and fees. It gives an effective annual interest rate for the whole term of the mortgage and is on the basis that the rates do not change even if the rate is described as variable.

What is a decision in principle?

A decision in principle is a document we will provide confirming that you will be able to borrow a certain amount subject to a full assessment when you apply. The amount may change once a full review is carried out.

You can use this document to prove to the seller that you have been pre-approved for a mortgage.

Do you offer Buy To Let mortgages?

Yes. As a specialist lender we have a range of mortgages for all types of landlord. For more information about our Buy  To Let mortgage range or give our team of mortgage advisers a call on 0333 3211001 who will work with you to find the mortgage that’s right for you. 

Can I take my Aldermore mortgage with me if I am moving home?

Our mortgages are not portable. However, if you want to take out a mortgage with us on your new home then early repayment fees will be refunded as long as the new mortgage is for the same amount or more and you complete within 2 months of the repayment date of the old mortgage.

Can I get a mortgage on an ex-Local Authority property (XLA)?

We do lend on ex-Local Authority or ex-council properties but they may be subject to some additional criteria. To find out more give one of our mortgage advisers a call and they will be able to advise you depending on your individual circumstances.         

Can I get a mortgage if I’m not from the UK?

If you are a UK or EU national and have been continuously resident in the UK for the last 2 years then you can apply for a mortgage with us.

If you are a non-UK or non-EU national then we will consider your application as long as you have been living in the UK for the last 2 years and also have a non-conditional and permanent right to reside.

We do not consider applications from ex-pats and those with diplomatic immunity.

Applying for a mortgage

How much deposit do I need for a mortgage?

Generally we need a minimum of 5% for a deposit for a mortgage. However, we do offer mortgages where you don’t need a deposit. Give one of our mortgage advisers a call to discuss options.

How much can I borrow?

That depends on your individual circumstances. We will need to take into account your income, the amount of deposit you have and any other financial commitments such as other loans or overdrafts and we may need to do a more detailed affordability assessment. Our mortgage advisers can advise you on the potential amount you could borrow.

What are your minimum and maximum loan amounts?

Our minimum loan amount is £25,000.

Our maximum loan amount depends on the type of mortgage we are able to offer you. To find out how much we can lend you speak to one of our advisors on 0333 3211001 who will be able to discuss your options. 

Mortgages Lending Criteria

Can I get a mortgage if I have a less than perfect credit history?

We look at each application on an individual basis. We apply a common sense approach to assessing applications and unlike many mortgage lenders we do not just rely on automated credit scoring. Speak to one of our experienced mortgage advisers who will be able to advise you further on 0333 3211001

Can I rent out my property?

If you want to rent out your property you need to take out a buy-to-let mortgage. Give us a call for more details

Payments and charges

Can I make overpayments on my mortgage?

Overpayments of up to 10% of the balance outstanding can be made each year, starting from the date of original mortgage completion and using the balance outstanding at the latest mortgage anniversary date, without incurring an early repayment charge. If you do make an overpayment, then the amount you owe and the interest you are charged will reduce from the date the overpayment is credited to your account.

Overpayments of more than 10% of the balance outstanding, or full mortgage repayment, will incur the early repayment charges detailed above.

Will I have to pay any early repayment charges?

Yes – if you redeem your mortgage within the early repayment charge period you will be subject to charges. These will vary depending on the type of mortgage you take out and will be made clear when you apply for your mortgage. 

When do I make my first mortgage payment?

It may be higher than your normal monthly repayment as it includes initial interest. Initial interest is made up of the interest from the start of your mortgage to the end of that month which is added to your first monthly repayment.

When will I receive my mortgage statement?

We post annual mortgage statements in January which cover the period from January to December of the previous year. It will show you the balance of the mortgage, payments and interest charges and any fees accrued over the year.

If you have any questions about your mortgage statements please get in touch with us.

What happens if I can’t pay my mortgage?

If you are facing financial difficulties you need to speak to us as soon as possible. We are here to support and help you through difficult times. Please give us a ring on 01733 821 388 and email address: collections@aldermore.co.uk.

You can also contact the following organisations for advice:

Step Change Charity

Money Advice Bureau

Citizens' Advice Bureau Call 08444 111 444 or visit the Citizen's Advice Bureau site

The National Debtline Call 0808 808 4000 or visit https://www.nationaldebtline.org

If you'd like to get the ball rolling or have any questions, give us a call on 0333 321 1000.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE