Mortgage FAQs - general
Do I need a deposit?
Most of the Cheshire's products require a deposit, however there are some products where a deposit is not required such as Shared Ownership schemes.
Who will the Cheshire lend to?
You must be over 18 to have a mortgage and we would generally recommend that the mortgage term does not extend beyond your planned retirement age. You will not be discriminated against because of your colour, race, ethnic or national origin, your sex or if you are disabled, however, you will need to have the right to reside and work in the UK for at least the duration of the mortgage. Up to four people can be joined in an application, at least one applicant will be required to have an acceptable form of income and all should have a good credit history. Your application will be subject to a credit check via a credit reference agency and you will need to prove your income.
Please be aware when applying online a maximum of two people can apply for a mortgage. If three or four people wish to apply for a joint mortgage they must do so in a Chesire Building Society Branch.
How much can I borrow?
This will depend on how much your property is worth, how much you earn and how much you can comfortably afford to repay each month. Why not use our mortgage calculator to get a guide on how much you could borrow with the Cheshire?
Which mortgage product is best?
Each mortgage product has different features and which is most suitable depends upon your personal circumstances.
What happens at the end of the discounted, capped or fixed rate period?
Your rate will revert to the standard variable rate or we may offer you another product.
Will you lend to 'Right to Buy' council tenants?
Yes. Up to 100% of the discounted price. It is also possible to borrow for home improvements.
Will you lend to me if I have a county court judgement against me, if I've been declared bankrupt or if I've been in arrears?
Applicants must have a satisfactory record of mortgage or rental payment (if institutional landlord e.g. Council, Housing Association, Letting Agency etc) for the last two years by evidence of a reference, or comprehensive statements, or a rent book.
Any applicant with a history of mortgage arrears or property in possession is not acceptable.
County Court Judgements
1 |
Loan to Value over 80% |
Where enquiries reveal any County Court Judgements registered against any applicant within the last four years the application is not acceptable and no further referral will be made - unless you are an existing Cheshire borrower in which case the application may be referred to Mortgage Department. This also applies to CCJs incurred more than four years ago which remain undischarged or settled. |
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2 |
Loan to Value up to 80% |
Subject to the following an application may be considered. No more than one CCJ per mortgage application (not applicant) in the four years preceding the application. Amount does not exceed £500. Satisfactory explanation must be received and recorded. The debt is evidenced as being fully discharged or settled. N.B. Anything outside the above is not acceptable unless we are dealing with an existing borrower in which case the application may be referred to Mortgage Department. |
How long can the term of the mortgage be?
The usual term is 25 years but your loan can be for any term from 5 to 35 years and should ideally end on or before your planned retirement age.
What is credit scoring?
A credit score search is commissioned through a credit referencing agency to help the Cheshire assess whether an applicant is likely to be able to repay their loan. There is no charge for this but a record of the search is put on the applicant's credit file.
What is an Intermediary?
Not everyone comes to the Cheshire via one of our branches or our internet site. Some may be advised to apply for a Cheshire mortgage by an intermediary.
An intermediary acts as a ‘middleman’, or ‘broker’ and searches the market for the most appropriate mortgage for a borrower. Intermediaries can be solicitors, estate agents, financial advisers or other people connected with the housing market. If you decide to use an intermediary please bear in mind that the Cheshire cannot accept responsibility for any advice or recommendations you may receive.
Is it safe to transmit my mortgage application to you over the Internet?
Security of your personal information is a prime concern to the Cheshire. No one on the Internet can view your personal details. Our online application form enables you to enter your application details and transmit them electronically to us in a secure environment. We have used the most up to date security techniques to ensure your information is received by us in a secure fashion.
What are early repayment charges?
An early repayment charge can sometimes be incurred if part or all of your mortgage is paid off before a pre-agreed date, or moved to another product or lender. If a charge is applicable it will be explained to you as part of the mortgage application process and full details will be provided in the mortgage documentation.
What can I do to protect my monthly payments?
Subject to eligibility, our Mortgage Payment Protection Insurance (provided by Cardif Pinnacle) is designed to protect you if your income is unexpectedly reduced. Mortgage Payment Protection Insurance will meet your monthly mortgage commitments for up to 12 months should you be unable to work due to accident, sickness or involuntary unemployment.
I have a repayment mortgage, can I change this to an interest only mortgage?
Yes. Please contact our Membership Services Department who will be happy to assist you. You can contact the Cheshire's Customer Contact Centre on 0800 195 1514 for further information. A fee will be charged for this service
(pdf format, 48KB, opens in a new window).
I have an interest only mortgage, can I change this to a repayment mortgage?
Yes. Please contact our Membership Services Department who will be happy to assist you. You can contact the Cheshire's Customer Contact Centre on 0800 195 1514 for further information. A fee will be charged for this service (pdf format, 48KB, opens in a new window).
Can I have a further advance added to my mortgage for home improvements?
Please visit one of our branch offices to discuss your requirements and our lending criteria. We would advise you to arrange quotations for the work to be carried out in advance of this. If you do not have a Cheshire branch in your vicinity please call our Customer Contact Centre on 0800 195 1514. A fee will be charged for this service (pdf format, 48KB, opens in a new window).
How does an endowment policy work?
An endowment policy is a type of monthly savings plan that aims to pay off your mortgage at the end of the term (although this may not be guaranteed), or pay off an outstanding mortgage balance in the event of death. An Endowment Policy could be used as a repayment vehicle for an interest only mortgage.
It's important to make sure that the policy will generate enough money to pay off your loan at the end of the term and it is advisable to check how it is performing on a regular basis. The Cheshire cannot take responsibility for the performance of any endowment policy taken out.
What if I have adverse credit history or have been rejected for a mortgage previously?
If you have had credit difficulties in the past then we would advise you to contact Cheshire Mortgage Brokers who specialise in helping customers who may struggle to find a mortgage lender.
Tel: 0800 030 4167
Website: www.cheshiremortgagebrokers.co.uk (link opens in new window).
