Frequently Asked Questions
The questions we are asked most often about mortgages, commercial finance and the lending process, answered in plain English. If your question is not covered here, get in touch and we will answer it directly.
Are Giles Finance authorised and regulated?
Yes. Giles Finance is a trading style of Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority under firm reference number 726857. You can confirm our status independently on the FCA Register. All of our advisers are qualified and regulated to advise on the products they recommend.
Can I get a mortgage if I am self-employed?
Yes. Lenders generally want to see two to three years of accounts or SA302 tax calculations, though some will consider one year’s figures. How income is assessed varies considerably between lenders — some use net profit, others salary plus dividends, and a few will use retained profit. This variation is precisely where a whole-of-market broker adds value, because the right lender choice can change what you are able to borrow.
Can I get a mortgage with an adverse credit history?
Often, yes. Missed payments, defaults, County Court Judgments and past bankruptcies do not automatically rule you out. What matters is how recent and how severe the issue is, whether it has been satisfied, and the size of your deposit. Specialist lenders price for this risk, so rates are usually higher than mainstream products.
Can I port my mortgage to a new property?
Most fixed-rate products are portable, which lets you carry your existing rate to a new property and avoid an early repayment charge. Porting is not automatic — you must requalify under the lender’s current criteria, and if you are borrowing more, the additional amount is normally priced at prevailing rates.
Do I need a deposit, and how much?
For a residential purchase, most lenders look for at least 5% of the purchase price, though the widest choice of rates opens up at 10% to 25%. Buy-to-let generally requires 20% to 25% as a minimum. Commercial mortgages typically need 25% to 40% depending on the property type and the strength of the covenant.
Do you charge a fee for your advice?
Any fee is disclosed to you in writing before you commit to anything, and we explain how we are paid at our first substantive conversation. Fees vary by the complexity of the case and the type of finance involved. You will never be charged a fee you have not agreed to in advance.
How does a bridging loan work?
A bridging loan is short-term finance secured against property, usually for terms between three and twenty-four months. Interest is often retained or rolled up rather than paid monthly, so there is no monthly outlay. The critical element is the exit — the lender needs to see credibly how the loan will be repaid, whether by sale, refinance onto a term product, or another identified source of funds.
How does invoice factoring differ from invoice discounting?
Both release cash tied up in unpaid invoices. With factoring, the funder takes over collection of your sales ledger, so your customers deal with them directly. With discounting, you retain control of collections and the arrangement is usually confidential. Factoring tends to suit smaller businesses without a dedicated credit control function; discounting suits larger businesses that want to keep the relationship in-house.
How is development finance released?
In staged drawdowns rather than as a single lump sum. Typically the lender advances a proportion of the land or acquisition cost at the outset, then releases construction funds in tranches against a monitoring surveyor’s inspection as work completes. Interest is usually charged only on the amount drawn.
How long does a mortgage application take?
A straightforward residential case commonly runs four to eight weeks from application to formal offer, though this depends heavily on valuation timescales and how quickly documents are supplied. Commercial and development cases usually take longer because of legal and valuation complexity. Bridging can complete in a matter of weeks where the case is clean and solicitors act promptly.
How much can I borrow on a buy-to-let mortgage?
Buy-to-let lending is assessed primarily on the rental income the property produces, not your personal earnings. Lenders apply an interest cover ratio, stress-testing the rent against a notional interest rate. Many also require a minimum personal income. Borrowing through a limited company is often assessed on a more favourable stress test than borrowing personally.
How much can I borrow on a residential mortgage?
Most lenders work to an income multiple, commonly between four and five and a half times income, then apply an affordability assessment that accounts for your committed outgoings, dependants and existing credit. Two lenders can reach materially different answers on identical circumstances, which is why comparing across the market matters.
Is a commercial mortgage regulated by the Financial Conduct Authority?
Generally not. Most commercial mortgages, buy-to-let lending and bridging finance fall outside FCA regulation, which means the protections that apply to regulated residential mortgages do not apply. There are exceptions — for example, where you or a close family member will occupy part of the property. We will always tell you clearly whether a particular case is regulated.
Should I remortgage or ask my lender for a further advance?
It depends on the rate you currently hold and any early repayment charge. If you are mid-way through a competitive fixed rate, a further advance from your existing lender often works out cheaper than breaking the whole loan. If your product is ending or you are on a standard variable rate, a full remortgage usually gives access to better pricing.
What areas do you cover?
We advise clients across England and Wales. We have offices in Dagenham, Rainham, Putney and Willenhall, and much of our work is handled remotely by telephone and email where that suits the client better.
What documents will I need to provide?
For most applications: proof of identity and address, three months of bank statements, and evidence of income — payslips and a P60 if employed, or accounts and SA302s if self-employed. Buy-to-let and commercial cases usually also need a schedule of existing properties, tenancy agreements, and business accounts.
What happens if I miss a mortgage payment?
Contact your lender immediately — most have dedicated teams and far more flexibility than borrowers expect, including payment holidays or a temporary switch to interest-only. A missed payment will normally be reported to credit reference agencies and can affect future borrowing. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
What is a commercial mortgage?
A loan secured against property used for business purposes — shops, offices, industrial units, mixed-use buildings or agricultural land. Lenders assess the property, the strength of the income it produces or the trading performance of the occupying business, and the borrower’s experience. Terms are generally shorter than residential mortgages and pricing is set case by case rather than from a published rate card.
What is a decision in principle?
An initial indication from a lender of what it would be prepared to lend, based on information you supply and usually a credit check. It is not a binding offer, but it demonstrates to estate agents and vendors that you are a credible buyer. A full application and valuation follow before a formal mortgage offer is issued.
What is a second charge mortgage?
A loan secured against a property that already has a mortgage on it, sitting behind the first lender in priority. It can be useful where you want to raise capital but your existing rate is attractive, or where an early repayment charge would make a full remortgage expensive. Because the lender ranks second, pricing is typically higher than a first charge.
What is an early repayment charge?
A fee applied if you repay all or part of your mortgage during a fixed or discounted period. It is usually expressed as a percentage of the balance and often reduces each year. Always check the figure before remortgaging or making a large overpayment, as it can outweigh the saving from a lower rate.
What is an expat buy-to-let mortgage?
A buy-to-let mortgage for a British national living overseas who wants to own rental property in the UK. Fewer lenders operate in this space, and those that do will look at your country of residence, the currency you are paid in, and whether you have an existing UK credit footprint. Rates are generally higher than equivalent domestic products.
What is asset finance?
Funding used to acquire equipment, vehicles, machinery or other business assets without paying the full cost upfront. It commonly takes the form of hire purchase, where you own the asset at the end of the term, or leasing, where you rent it for an agreed period. The asset itself usually provides the security.
What is loan to value, and why does it matter?
Loan to value, or LTV, is the loan expressed as a percentage of the property’s value. A £300,000 loan on a £400,000 property is 75% LTV. It is one of the main drivers of pricing: the lower the LTV, the lower the risk to the lender and generally the better the rate available to you.
What is the difference between a fixed rate and a variable rate?
A fixed rate holds your interest rate for an agreed period, so payments are predictable regardless of what happens to the Bank of England base rate. A variable rate — whether a tracker, discount or standard variable rate — can move up or down. Fixed rates buy certainty; variable rates may cost less if rates fall, but carry the risk that they rise.
What is the difference between a mortgage broker and going direct to a bank?
A bank can only offer you its own products. As a whole-of-market broker we compare across a wide panel of lenders, including specialist and intermediary-only lenders whose products are not available directly to the public. Where a case is unusual — self-employed income, adverse credit, a complex property, or a limited company structure — that breadth of choice usually matters more than the headline rate.
What is the difference between buying property personally and through a limited company?
Personal ownership is simpler and generally cheaper to set up. A limited company or SPV structure changes how profits are taxed and how mortgage interest is treated, which is why many portfolio landlords use one. Lender choice, pricing and stress tests also differ between the two. The right answer depends on your wider tax position, and you should take advice from a qualified accountant or tax adviser before deciding.
Will applying for a mortgage affect my credit score?
A decision in principle may leave a soft or hard footprint depending on the lender. A full application always leaves a hard search. One or two searches are unlikely to cause difficulty, but several in a short period can. This is another reason to narrow the lender choice before applying rather than making speculative applications.
Still have a question?
Speak to a qualified adviser about your circumstances. Call 020 8088 2211 or send us an enquiry. We advise clients across England and Wales from offices in Dagenham, Rainham, Putney and Willenhall.
Giles Finance is a trading style of Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857).
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Most commercial mortgages, buy-to-let lending and bridging finance are not regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on any loan secured against it. Nothing on this page is tax advice; you should consult a qualified accountant or tax adviser about your own position.
