Why is Sarah Grace different?

Many of our clients have income that does not fit the majority of lenders standard approach, a bit like putting a square peg in a round hole.  We have had over 20 years of dealing with self employed/ complex income, we have come across most scenarios and can find the right solution for you.

We have set up our business and process to deal with clients the most efficient way possible, as we understand that this is a stressful time.  We can do everything remotely allowing you to get on with your day job with a little amount of disruption possible.

How much can I borrow?

Your borrowing capacity is unique to your circumstances. Lenders will use a combination of income and your committed expenditure to determine how much you are able to lend. We are experts at understanding your budget, knowing which lenders will lend the most based on your income, outgoings and profession. Contact us today to get your personalised budget.

What fees will I pay?

Valuation fee

Lenders will require a standard valuation for mortgage purposes as a minimum. Some lenders will offer this as a free incentive, others pass the cost of this to you. The amount of this fee will vary from lender to lender and is normally higher, dependent on the property value. Standard Valuations are cheapest. You may choose to upgrade this to a Homebuyers Report to get a better idea of the properties condition. For some properties it will be necessary to instruct a full building survey.

Arrangement fee

An arrangement fee is a charge from the lender for the product chosen. Arrangement fees vary significantly but the average is around £1,000. You can usually choose between paying the arrangement fee upfront and adding it to the mortgage, however by adding it to the mortgage will cost more in the long term as you will pay interest on it. There are mortgage rates available without an arrangement fee, though typically they have a higher interest rate. We will provide a personalised recommendation on which options are the most cost effective for your circumstances and loan amount.

Broker fee

This is a fee payable to your broker for the work involved in finding you a mortgage and obtaining a mortgage on your behalf. At Sarah Grace, we typically charge £195 for research and assessment and £295 on completion for administering your mortgage.

Stamp Duty Land Tax

The stamp duty payable will depend on your circumstances and the property value.  For confirmation of how much you pay, please go to https://www.stampdutycalculator.org.uk/, if you are unsure, your solicitor will be able to advise on the amount payable.

Legal Costs

The legal costs are payable to your Legal Representative. For solicitors who offer a ‘No sale, no fee’ service there will normally be an upfront, non-refundable amount payable at outset which covers the searches and disbursements for the property you are buying. The remaining fee will be paid on completion which will cover their own costs for administering the change of ownership.

What insurances do I need to take?

Buildings Insurance

Lenders make it mandatory to have buildings insurance. This insures the property against damage and ensures that the lenders security is safe. If you are purchasing a leasehold property then your buildings insurance will normally form part of your annual or monthly service charge but if you purchase a freehold house you will normally be responsible for ensuring the property is fully insured. We can help you obtain the appropriate cover by taking into account the rebuild value of your home, whether it is close to a body of water, has 5 level mortice dead locks on doors, has window locks and whether it has any structural problems that need to be considered. It is possible to insure your property for accidental damage and the excess you will pay can also be personalised.

Contents insurance

This is not mandatory for the lender but is taken to cover your personal possessions within the home. You can normally keep costs down by combining this with buildings cover, as part of the same policy. It is also possible, within this policy to cover your valuables outside of the home, specify your expensive items to ensure that you have cover that would allow you to replace these items. We will help you cover expensive jewellery, watches, antique items, art or specialist items within and outside of your home.

There are also personal protection products such as Life Insurance, Critical Illness and Income protection. These products are not mandatory, but we will help you understand the importance of ensuring that you and your family are adequately protected.

I am a LTD company with retained profit. Can I use this to lend?

There are lenders who understand that you may not want to take all of the profit out of the business as this will increase your personal tax liability.  Therefore the standard approach of many lenders using salary and dividends will not lend as much as lenders who will consider either the profit before corporation tax or profit after tax plus your salary. There are options available to you, contact us to discuss further.