Frequently asked mortgage questions
Your home or property may be repossessed if you do not keep up repayments on your mortgage
Here’s a list of the most common questions we're asked about mortgages. If you're looking for a list of terms and phrases you might come across and an explanation of what they mean please refer to our mortgage jargon buster section.
Icon expand What is a mortgage?
Very few buyers will have the money to purchase a property outright and so use a mortgage to help them buy a home.
A mortgage is a loan secured against a property. Having a mortgage means that you borrow the money to buy your home and you repay this over an agreed period of time, depending on what you can afford.
It's always important, when choosing a mortgage, that you choose a repayment schedule that suits your circumstances as your home may be repossessed if you do not keep up repayments on your mortgage.
Icon expand Do I need to be employed to apply for a mortgage?
You’ll need to be employed or self-employed to qualify for a mortgage. This will help to make sure you can manage your mortgage repayments in the future.
Icon expand How do I know if I'm earning enough for a mortgage?
We can help you to work out if you can afford the mortgage you need by looking at your household expenditure and any additional financial commitments such as loans, overdrafts, credit and store cards, hire purchase agreements and maintenance payments.
Icon expand Can I get a mortgage offer before I find my property?
Our Agreement in Principle letter tells you whether we could potentially lend you the amount you want to borrow.
Your mortgage arranger can usually provide with an Agreement in Principle letter at your first appointment. We will just need some personal information from you to help with our decision.
- Please note, an Agreement in Principle letter is not an offer of a loan
- Requesting an Agreement in Principle does not mean that you are committing to apply for a mortgage with us
- Information provided will not be used for any marketing purposes
- Lending criteria, terms and conditions apply
- It is unlikely that we will be able to lend to you if you have ever been declared bankrupt, have had county court judgements against you, your property seized, defaulted on your mortgage, or had to organise a repayment plan with your creditors.
Icon expand What other costs may I have when taking out a mortgage?
It's important you add up all the costs involved in a mortgage, not just the interest rate. You may need to budget for a valuation fee, search fees, land registry fees and legal costs, as well as stamp duty on properties over a certain amount. Your mortgage arranger can give you more information on fees that you may need to pay.
We expect you to take out buildings insurance to cover damage or rebuilding costs if needed. You may also decide to take out contents insurance along with sickness cover, unemployment cover and life cover.
Icon expand How do I know if the property I'm buying is worth the money?
Before we issue you with a written mortgage offer we’ll always complete a valuation of the property which will take into consideration the general condition of the property, look for any major faults in accessible parts of the building that may affect the value or indeed or any urgent problems that need inspecting by a specialist before you sign a contract.
Icon expand Do I always need to take out a life cover with a mortgage?
When you take out a mortgage, your lender needs to be sure that you'll be able to pay it back, even if you lose your job, become unwell for a long period or die.
Because of this, lenders may request you buy life cover when you take out your mortgage. We do not offer life insuraance, which should be arranged with an independent adviser.
Icon expand Can the product fee be added to my mortgage?
Icon expand When will I know if my mortgage application has been successful?
When we’ve received all the required documentation and are happy with the valuation report we will make our decision on your application.
If your application is approved we will then send you the mortgage offer documents to read through and sign. We will also send a copy to your Advocate.
Read our step-by-step mortgage guide for more information on the different stages of the process.
Icon expand What happens after my mortgage is approved?
Your Advocate will carry out various legal checks on the property to make sure they’re happy. If there are no concerns, they’ll contact us to confirm the start date of the mortgage and when they’ll need the funds to be released. We’ll then send the funds to the Advocate who will complete the transaction.
Once the mortgage is approved we’ll confirm how much your monthly payments will be and on what day of the month they’ll be paid.
Icon expand Am I eligible for a mortgage?
To apply for a mortgage:
- you must be over 18 years old
- the maximum age for repayment is 65 years old. Where a mortgage extends beyond normal retirement age, you should be able to demonstrate continued ability to service the loan by way of pension or alternative means.
- the property you want to purchase must be in the Channel Islands, Isle of Man or Gibraltar
- you must be resident in the Channel Islands, Isle of Man or Gibraltar
It is unlikely that we will be able to lend to you if you have ever been declared bankrupt, have had court judgements against you, had your property seized, defaulted on a mortgage, or had to organise a repayment plan with your creditors.
Security and buildings insurance are required when you take out a mortgage.
Icon expand How much can I borrow and for how long?
We can help you to work out how much you can borrow by looking at your household expenditure and any additional financial commitments such as loans, overdrafts, credit and store cards, hire purchase agreements and maintenance payments.
Icon expand How do I arrange an appointment with a mortgage arranger?
Icon expand What happens at a mortgage appointment?
One of our mortgage arranger will discuss your mortgage requirements and advise on the best option for you. If you wish to proceed with an application they will guide you through the mortgage process.
Want to ask us a mortgage question or arrange an appointment? Our dedicated mortgage team can help.
Chat with our mortgage team or arrange an appointment:
Jersey: 01534 282262
Guernsey: 01481 703809
Gibraltar: 00350 200 14477
Isle of Man: 01624 637676
Lines are open Monday to Friday 9am - 5pm (except bank holidays). If outside these hours please leave a message and one of our team will contact you as soon as possible. Alternatively you can visit your local branch where a member of staff will be happy to arrange an appointment for you.