The approval process for mortgage loans differs from bank to bank and depends on several variables, including credit score, income, and work status. While certain banks may have more straightforward approval procedures than others, it is still crucial to research and weighs your options before choosing one.
Barclays, Halifax, and Nationwide are a few banks that give Mortgage loans easily in the UK. These banks offer online mortgage calculators that will help you estimate how much you can borrow and how much you can pay each month.
Detailed explanations to the banks that give mortgage loans easily in the UK will be discussed in the next part of this article.
Banks That Give Mortgage Loans Easily In the UK
The banks that give mortgage loans easily in the UK are:
As a result of its expertise in lending on various property constructions, Halifax has amassed a sizable data bank of knowledge about different property kinds, and they make good use of it.
They take a pretty individualized approach to the kind of property. While there will always be specific situations where they won’t lend, they always decide on each property after hearing the opinions of their valuer.
For people who have been for a shorter time than the typical requirement of two years, they may also be flexible. In addition to other conditions, they will consider you for a mortgage if you have a minimum of or HMRC submissions.
Nationwide offers several attractive benefits for people purchasing their first home, not the least of which is the £500 payback it provides after the sale is completed. Additionally, it offers a variety of 95% LTV mortgages, so purchasers don’t require as large of a deposit as they would with higher LTV alternatives.
Nationwide extends buyer eligibility by classifying applicants without a mortgage for three years or longer as first-time buyers.
However, its “Helping Hand” mortgages, created especially for first-time buyers, stand out as its most distinctive feature. For transactions with 5 or 10 years of fixed rates, it offers income multiples of up to 5.5 times yearly pay.
3. Aldermore Bank
When applying for a mortgage, self-employed borrowers may encounter challenges because many lenders have restrictions on the amount they are willing to offer, the deposit needed, and the accepted types of income documentation. Aldermore Bank, on the other hand, positions itself as an expert in self-employed mortgages, providing support for sole proprietors and limited enterprises.
As a result, it provides several of up to 5.5 times the earnings for single and joint applicants having an income of at least £60,000 per year, does not place a cap on the LTV for self-employed borrowers, and allows retained profits to be considered when determining income.
Only accessible through an intermediary, a specialized lender accepts applications from borrowers with less-than-perfect credit ratings, agrees with all defaults older than three years, and underwrites each case separately.
4. Skipton Bank
Due to limitations many lenders place on the amount they are willing to offer, the deposit needed, and the accepted types of income documentation, self-employed borrowers may occasionally need help applying for a mortgage. In addition to providing multiples of five times your salary, Skipton Building Society is also likely to provide mortgages for a variety of other self-employed organizations, which is even more impressive.
These can include solo proprietors, corporate officers, shareholders, landlords, independent contractors, athletes in the field of professional sport, employees of health banks, and individuals with zero-hours contracts.
Skipton provides affordable and adaptable lending for self-employed borrowers, with some very competitive fixed-rate packages and up to 95% LTV available for home mortgages up to £600,000.
5. Kensington Mortgages
You still have options if your credit rating prevents you from obtaining a mortgage from a traditional lender. One of them is working with a specialized lender who works with “sub-prime” borrowers. These can range from lenders for those with terrible credit, like Bluestone Mortgages, to those for persons with less lousy credit.
Among them, Kensington Mortgages has the highest rating from us due to the variety of innovative products it offers and the possibility for some customers to be able to borrow at greater income multiples.
In addition to the typical mortgage lending packages, Kensington Mortgages is one of the few lenders in the UK to provide 40-year fixed-rate agreements.
6. Accord Mortgage
Lenders are eager to take advantage of the enormous number of property investors in the UK, making the buy-to-let mortgage market competitive. Our buy-to-let best-buy ranking frequently includes Accord Mortgages, the intermediary-only division of the Yorkshire Building Society, because of its distinctively low rates.
Along with the rates, the flexibility of its underwriting procedure, which seeks to take into account the specifics of each application rather than applying its lending criteria uniformly, is another factor that appeals to some borrowers.
Offers made by HSBC for mortgages are good for six months after the offer date. This gives you plenty of time to stay committed or leave if another offer comes; that’s better.
At HSBC, any product (arrangement) fees can be paid ahead or added to the remaining balance of your mortgage borrowing. However, unless there are unusual circumstances if you choose to pay in advance and do not close on your mortgage offer, these expenses are often non-fundable.
8. Barclays Bank
Barclays Bank can assist you if you want to buy a new or first home, remortgage your existing home, borrow extra money, or buy a rental property. You can find information on our many types of mortgages and application advice on their website.
The duration of Barclay’s mortgage offer depends on your circumstances. However, they’ll try to decide for you as soon as they can. On average, it typically takes four to six weeks to obtain the loan you request. After you submit your application, they might need further information from you, so keep an eye out for any texts, emails, or letters from the bank.
Tip for Making Your Mortgage Loan Easier To Get
Remember that stellar credit history is one of the most critical factors in swiftly receiving a mortgage approval. Therefore, one crucial duty you can complete right away is to get your credit reports. If anything is listed on them that shouldn’t be, you can take action to have it deleted to avoid further delaying your application.
In addition, the list of additional suggestions below can assist your application to proceed through the process more quickly:
- Prepare your deposit proof.
- Permission to move forward with a government plan (if you’re using one)
- You are listed as a registered voter at your current address.
- Your passport and other documents names match what is on your application.
- You’ve sent three recent bank statements that are legitimate copies of yours.
- The three most recent paystubs you provided are authentic copies corresponding to the income you reported on your application.
- The rest of your supporting documentation is prepared.
- Any outdated, inactive bank accounts have been closed.
- Including utility and phone contracts, you last applied for a new credit line in the past three months.
- You last took out a payday loan in the previous two years.
By working with a broker, you can prevent any delays. For instance, they could complete the paperwork or double-check your responses to ensure accuracy. You won’t have to wait for the lender to request specific documents because they will specifically tell you which ones a mortgage provider could need to examine.
Mortgage Tax Breaks and Charges in the UK
In the UK, stamp duty is the highest additional cost associated with home ownership. In Wales and Scotland, it is also referred to as land transaction tax and land and buildings transaction tax.
All owner-occupiers must pay stamp duty on any property worth over £125,000 in England or Belfast (£175,000 in Scotland, £180,000 in Wales). Depending on the purchase price, the tax payable can be between 2% and 12%. After your real estate acquisition is complete, it is typically payable within 14 days.
The average rate must be paid in addition to a 3% fee for buyers of second homes or buy-to-let properties.
Frequently Asked Questions
What types of paperwork do mortgage lenders usually require?
Depending on the lender, different information is needed for mortgage applications, although several universal requirements are frequently made of all applicants. These often consist of the following:
- driving permit
- Proof of identity and address
- evidence of income
- Evidence of income
- recent three-month bank statements
- To guarantee a smooth and successful mortgage application procedure, it is crucial to compile all relevant data before starting.
How many lenders offer mortgages?
In the UK, there are about 100 mortgage lenders. Banks and building societies predominate here. Others are specialists who might not be as well-known as some of the more well-known ones.
What requirements must I meet to be granted a loan?
You must be a resident of the UK who is over 18 at the time of application, be employed either full- or part-time, and get regular payment to be eligible for a loan. Additionally, you must be able to supply bank account and debit card information.
How quickly can you get a mortgage in the UK?
It can take two to six weeks for a mortgage to be approved once an offer has been accepted on the house and the application has been submitted. The majority of mortgage offers then expire after six months. To buy a home, you must obtain a mortgage.
Can non-UK citizens apply for mortgages?
No, you are not required to be a citizen of the UK to purchase a home. If you are a foreign national, you can buy a home in the UK with a joint mortgage from a non-UK citizen. As a non-UK citizen, you can purchase a property through the Help to Buy program.
Does HSBC make it challenging to secure a mortgage?
You’ll likely get a mortgage approval if you show at least 24 months’ worth of accounts as proof of income. Regarding adverse credit, the mortgage underwriters at HSBC can be challenging, and many different sorts of it will typically result in an immediate rejection.