Achieving the dream of homeownership often involves obtaining a mortgage, a financial tool that enables individuals to purchase a house. However, navigating the mortgage process can be overwhelming without a clear understanding of its intricacies. This comprehensive guide aims to demystify the journey of getting a mortgage and equip you with the necessary knowledge to make informed decisions.
In this article, we will explore the step-by-step process of obtaining a mortgage, from assessing your financial readiness to securing the ideal loan for your needs. Whether you’re a first-time homebuyer or looking to refinance your current mortgage, this guide will provide valuable insights and practical tips to help you navigate the mortgage landscape with confidence.
By the end of this article, you will have a solid foundation of knowledge about mortgages, enabling you to make educated choices as you embark on your homeownership journey. So, let’s dive in and discover how to get a mortgage.
Understanding Mortgages: A Beginner’s Guide
When it comes to obtaining a mortgage, it’s essential to have a solid understanding of the key concepts and terminology involved. This section serves as a beginner’s guide to help you grasp the fundamental aspects of mortgages.
1. What is a Mortgage?
A mortgage is a loan specifically designed for purchasing a property. It is typically provided by a financial institution, such as a bank or mortgage lender, and is secured by the property itself. The borrower (homebuyer) agrees to repay the loan over a specified period, usually with interest.
2. Mortgage Principal
The mortgage principal refers to the initial amount borrowed to purchase the property. It forms the basis for calculating interest and determining the monthly payments. As the borrower makes payments over time, the principal balance decreases.
3. Interest Rates
Interest rates play a significant role in mortgages. They represent the cost of borrowing money and can be either fixed or adjustable. A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing stability in monthly payments. In contrast, an adjustable-rate mortgage (ARM) has an interest rate that may fluctuate periodically based on market conditions.
4. Loan Term
The loan term refers to the length of time the borrower has to repay the mortgage in full. It is typically expressed in years. Common loan terms include 15, 20, or 30 years. A shorter loan term generally results in higher monthly payments but can save on interest expenses over the long term.
5. Down Payment
The down payment is the initial payment made by the homebuyer toward the purchase price of the property. It is usually a percentage of the total price and varies based on factors such as loan type, lender requirements, and the buyer’s financial situation. A higher down payment often leads to more favorable loan terms and can help reduce monthly payments.
Important Note:
Understanding the basics of mortgages is crucial, but it’s essential to conduct further research and seek professional advice to fully comprehend the intricacies of specific mortgage products and their implications.
Determining Your Budget and Financial Readiness
Before diving into the mortgage process, it’s crucial to assess your budget and financial readiness. This step ensures that you have a clear understanding of your financial situation and helps you set realistic expectations for homeownership. Here are some key steps to determine your budget and financial readiness:
1. Evaluate Your Income and Expenses
Start by thoroughly examining your income sources, including salary, bonuses, and any other regular earnings. Next, assess your monthly expenses, including housing costs, utilities, transportation, groceries, debt repayments, and discretionary spending. This evaluation will provide a clearer picture of your cash flow and how much you can comfortably allocate towards a mortgage payment.
2. Calculate Your Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a crucial factor lenders consider when assessing your mortgage application. It compares your monthly debt obligations to your gross monthly income. Aim for a DTI ratio below 43% to increase your chances of mortgage approval. Calculate your DTI ratio by dividing your total monthly debt payments by your gross monthly income and multiplying by 100.
3. Determine Your Target Mortgage Payment
Based on your income, expenses, and desired lifestyle, determine the maximum monthly mortgage payment you can afford comfortably. Consider factors like property taxes, homeowner’s insurance, and potential homeowners’ association (HOA) fees in addition to the principal and interest payments.
4. Save for a Down Payment and Closing Costs
Assess your savings and set a goal for your down payment. While the traditional benchmark is 20% of the purchase price, many mortgage programs offer options for lower down payments. However, keep in mind that a higher down payment often leads to better loan terms and can help avoid private mortgage insurance (PMI) requirements. Additionally, factor in closing costs, which typically range from 2% to 5% of the home’s purchase price.
5. Check and Improve Your Credit Score
A strong credit score improves your chances of securing a favorable mortgage. Obtain your credit report, review it for accuracy, and address any errors. Take steps to improve your credit score by paying bills on time, reducing credit card balances, and avoiding new debt. A higher credit score can result in better mortgage options and lower interest rates.
Important Note:
Consulting with a mortgage professional or financial advisor is recommended to assess your specific financial situation accurately. They can provide personalized guidance and help you navigate the mortgage process effectively.
Researching Different Types of Mortgages
When it comes to mortgages, there isn’t a one-size-fits-all solution. Various types of mortgages exist, each with its own features, advantages, and eligibility requirements. Understanding these options is essential for finding the right mortgage that aligns with your financial goals and preferences. Here are some common types of mortgages to consider:
1. Conventional Mortgages
Conventional mortgages are not insured or guaranteed by any government agency. They typically require a higher credit score and a larger down payment compared to other loan types. Conventional mortgages offer flexibility in terms of loan duration, such as 15-year or 30-year fixed-rate options.
2. Federal Housing Administration (FHA) Loans
FHA loans are insured by the Federal Housing Administration and are popular among first-time homebuyers. These loans often require a lower down payment (as low as 3.5% of the purchase price) and have more flexible credit requirements. However, FHA loans do come with additional costs, such as upfront mortgage insurance premiums and ongoing mortgage insurance premiums.
3. Veterans Affairs (VA) Loans
VA loans are available exclusively to eligible veterans, active-duty service members, and surviving spouses. These loans are guaranteed by the Department of Veterans Affairs and offer advantages like no down payment requirements, lower interest rates, and limited closing costs. VA loans can be an excellent option for those who qualify.
4. United States Department of Agriculture (USDA) Loans
USDA loans are designed for low-to-moderate income homebuyers looking to purchase homes in designated rural areas. These loans offer 100% financing, meaning no down payment is required. USDA loans also provide competitive interest rates and reduced mortgage insurance costs.
5. Jumbo Loans
Jumbo loans are mortgage loans that exceed the loan limits set by government-sponsored enterprises (GSEs). These loans are suitable for high-value property purchases and may require a larger down payment and a higher credit score.
Important Note:
Each type of mortgage has its own requirements and considerations. It’s essential to research and consult with mortgage professionals to determine which mortgage option best suits your financial situation and homeownership goals.
Gathering Necessary Documents and Information
To proceed with your mortgage application, you’ll need to gather specific documents and information. Lenders require this information to assess your financial situation, verify your eligibility, and determine the loan amount for which you qualify. Here are the essential documents and information you’ll need:
1. Personal Identification
Prepare a valid form of identification, such as a driver’s license, passport, or government-issued ID. This document will verify your identity and ensure compliance with Know Your Customer (KYC) regulations.
2. Proof of Income
Lenders need to verify your income to assess your repayment ability. Gather documents such as pay stubs, W-2 forms, and tax returns for the past two years. If you’re self-employed, you may need to provide additional documentation, such as profit and loss statements or 1099 forms.
3. Employment Verification
Lenders typically require employment verification to ensure your income stability. This can be done through recent pay stubs, an employment verification letter from your employer, or bank statements reflecting regular income deposits.
4. Financial Statements
Prepare recent bank statements, including savings, checking, and investment accounts. These statements help lenders assess your assets, evaluate your financial stability, and confirm the availability of funds for the down payment and closing costs.
5. Credit Information
Lenders will pull your credit report to evaluate your creditworthiness. Ensure that your credit history is accurate and up to date. Review your credit report beforehand and address any errors or discrepancies.
6. Existing Debts and Obligations
Compile a list of your existing debts, such as credit cards, student loans, auto loans, and other outstanding obligations. This information helps lenders calculate your debt-to-income ratio and determine your capacity to take on additional debt.
7. Property Information
If you have already identified a property, gather relevant documents such as purchase agreements, property details, and any other information required by the lender.
Important Note:
Keep in mind that additional documentation may be required based on your specific financial situation and the requirements of the lender. It’s crucial to consult with your mortgage professional to ensure you have all the necessary documents ready for a smooth mortgage application process.
Preparing Your Credit Score for Mortgage Approval
Your credit score plays a significant role in the mortgage approval process. Lenders use it to assess your creditworthiness and determine the interest rate and terms for your mortgage. Taking steps to prepare and improve your credit score can increase your chances of mortgage approval and secure more favorable loan terms. Here’s what you can do:
1. Check Your Credit Report
Obtain a copy of your credit report from major credit bureaus such as Experian, TransUnion, and Equifax. Review the report for any errors, inaccuracies, or fraudulent activities. Dispute any discrepancies and work towards resolving them to ensure your credit report is accurate.
2. Pay Bills on Time
Consistently paying your bills on time is one of the most crucial factors in building good credit. Late payments can negatively impact your credit score. Set up payment reminders or automatic payments to help ensure timely payments and demonstrate responsible financial behavior.
3. Reduce Credit Card Balances
High credit card balances can negatively affect your credit utilization ratio, which compares your credit card balances to your credit limits. Aim to keep your credit utilization below 30% to maintain a good credit score. Consider paying down balances or spreading them across multiple cards to improve this ratio.
4. Avoid Opening New Credit Accounts
Opening new credit accounts, especially shortly before or during the mortgage application process, can raise concerns for lenders. Multiple recent credit inquiries can temporarily lower your credit score. It’s generally advisable to refrain from opening new credit accounts until after your mortgage is approved.
5. Maintain a Healthy Credit Mix
Having a diverse mix of credit accounts, such as credit cards, installment loans, and a mortgage, can positively impact your credit score. It shows that you can handle different types of credit responsibly. However, avoid opening new accounts solely for the purpose of improving your credit mix.
6. Consult with a Credit Professional
If you have significant credit challenges or are unsure how to improve your credit score, consider consulting with a credit counselor or a credit repair professional. They can provide guidance on managing your credit and help you take steps to improve your creditworthiness.
Important Note:
Improving your credit score takes time and consistent effort. Start early and be proactive in managing your credit to give yourself the best chance of securing a favorable mortgage.
Exploring Lenders and Getting Preapproved
When it comes to obtaining a mortgage, it’s crucial to explore different lenders and get preapproved before starting your home search. This process helps you understand your borrowing capacity, demonstrates your seriousness as a buyer, and positions you to make competitive offers. Here’s how to explore lenders and get preapproved:
1. Research Lenders
Start by researching and comparing various lenders to find the one that suits your needs. Consider factors such as interest rates, loan terms, reputation, customer service, and online reviews. Speak with friends, family, and real estate professionals for recommendations and insights.
2. Gather Necessary Documents
Before applying for preapproval, gather the necessary documents, similar to those required for the mortgage application process. This typically includes proof of income, employment verification, identification, and financial statements. Consult with your chosen lender to confirm their specific requirements.
3. Get Preapproved
Contact the lenders you have shortlisted and request a preapproval application. Complete the application, providing accurate and up-to-date information. The lender will review your application, verify the documents, and assess your creditworthiness. Upon preapproval, the lender will provide a preapproval letter indicating the loan amount for which you qualify.
4. Understand the Preapproval Letter
Review the preapproval letter carefully, as it outlines crucial details such as the loan amount, loan type, interest rate, and expiration date of the preapproval. Take note of any conditions or contingencies mentioned in the letter.
5. Compare Loan Offers
Once you have preapproval letters from multiple lenders, compare the loan offers. Consider factors such as interest rates, loan terms, closing costs, and any other relevant details. Assess how these offers align with your financial goals and choose the lender and loan option that best suits your needs.
Important Note:
Preapproval is not a guarantee of final loan approval, as it is subject to a satisfactory appraisal and underwriting process. Additionally, multiple preapproval applications within a short period may impact your credit score. It’s advisable to complete this process within a focused timeframe to minimize any potential impact.
Comparing Mortgage Rates and Terms
Comparing mortgage rates and terms is a crucial step in securing the best mortgage for your needs. The interest rate and terms of your mortgage can significantly impact your monthly payments and overall cost. Here’s how to effectively compare mortgage rates and terms:
1. Understand the Relationship Between Rates and Terms
Mortgage rates and terms go hand in hand. Typically, shorter-term mortgages, such as 15-year loans, have lower interest rates compared to longer-term mortgages, such as 30-year loans. It’s important to understand the trade-offs between a lower interest rate and a higher monthly payment versus a higher interest rate and a lower monthly payment.
2. Shop Around for Rates
Contact multiple lenders and inquire about their current mortgage rates. Obtain quotes for the same loan type, loan amount, and duration to make accurate comparisons. Consider reaching out to mortgage brokers who can help you access multiple lenders and potentially find better rates.
3. Consider Points and Fees
When comparing mortgage rates, take into account any associated points and fees. Points are upfront fees paid to the lender to reduce the interest rate. Evaluate whether paying points makes financial sense based on how long you plan to stay in the home and your overall budget.
4. Evaluate Annual Percentage Rate (APR)
While mortgage rates are important, the Annual Percentage Rate (APR) provides a more comprehensive view of the total cost of the loan. The APR includes both the interest rate and certain closing costs, giving you a better understanding of the overall cost of borrowing.
5. Assess Loan Terms
Examine the terms of each loan, including the duration (e.g., 15 years, 30 years), repayment structure, and any specific features or benefits. Consider how these terms align with your financial goals, payment capabilities, and long-term plans.
6. Seek Expert Advice
Consult with mortgage professionals, such as loan officers or mortgage brokers, who can provide insights and guidance in comparing mortgage rates and terms. They can help you understand the intricacies of each loan option and assist in making an informed decision.
Important Note:
Remember that securing the best mortgage involves considering not only the interest rate but also the terms, fees, and your specific financial situation. Take your time to weigh all the factors and choose the mortgage that aligns best with your needs and long-term goals.
Choosing the Right Mortgage for Your Needs
With various mortgage options available, choosing the right one for your needs requires careful consideration. The ideal mortgage aligns with your financial goals, budget, and long-term plans. Here’s how to choose the right mortgage:
1. Assess Your Financial Situation
Evaluate your financial situation, including your income, expenses, and savings. Consider your long-term goals, such as how long you plan to stay in the home and your anticipated future income. Determine the monthly payment you can comfortably afford while maintaining a balanced budget.
2. Understand Your Risk Tolerance
Different mortgage types carry varying degrees of risk. For example, adjustable-rate mortgages (ARMs) offer lower initial interest rates but may increase over time. Fixed-rate mortgages provide stability with a consistent interest rate. Consider your risk tolerance and choose a mortgage type that aligns with your comfort level.
3. Consider Loan Term
Decide on the loan term that best suits your financial goals. Shorter loan terms, such as 15-year mortgages, offer lower interest rates but higher monthly payments. Longer loan terms, like 30-year mortgages, provide lower monthly payments but may result in more interest paid over the life of the loan. Assess your priorities and choose a term that balances your payment affordability and interest savings.
4. Factor in Down Payment and Closing Costs
Evaluate your down payment capabilities and consider the impact on your loan options. A higher down payment can potentially result in better loan terms and eliminate the need for private mortgage insurance (PMI). Additionally, factor in closing costs and assess how they align with your budget.
5. Seek Professional Advice
Consult with mortgage professionals, such as loan officers or mortgage brokers, who can provide personalized guidance based on your financial situation and goals. They can help you navigate the intricacies of different mortgage products, explain the pros and cons, and assist in making an informed decision.
6. Compare Loan Offers
Review the loan offers from different lenders, comparing factors such as interest rates, terms, fees, and flexibility. Consider the total cost of borrowing, your payment affordability, and the long-term implications. Use this information to make an educated decision.
Important Note:
Choosing the right mortgage is a critical decision that can have a significant impact on your financial well-being. Take your time, evaluate your options, and seek professional advice to ensure you make the best choice for your unique circumstances.
Understanding the Mortgage Application Process
The mortgage application process involves several steps that are crucial to securing a mortgage for your home purchase. Understanding this process will help you navigate it smoothly and increase your chances of a successful application. Here’s an overview of the mortgage application process:
1. Gather Your Financial and Personal Information
Collect all the necessary financial and personal information required for the mortgage application. This includes documents such as proof of income, employment verification, identification, tax returns, bank statements, and any other documents specified by the lender. Ensure that all the information is accurate and up to date.
2. Complete the Application
Fill out the mortgage application provided by the lender. This application will require you to provide detailed information about yourself, your employment, your income, your assets, and your liabilities. Be thorough and accurate in filling out the application to avoid delays or complications.
3. Submit the Application
Submit the completed mortgage application along with all the required supporting documents to the lender. Ensure that you submit all the necessary paperwork in a timely manner to keep the application process moving forward.
4. Loan Processing and Underwriting
Once the lender receives your application, it will initiate the loan processing and underwriting stage. During this stage, the lender will review and verify the information provided in your application, assess your creditworthiness, and evaluate the property’s value. They may also request additional documentation or clarification during this process.
5. Property Appraisal
As part of the mortgage application process, the lender will order an appraisal of the property you intend to purchase. A professional appraiser will assess the property’s value to ensure it aligns with the loan amount requested. The appraisal helps protect both the lender and the buyer from overpaying for the property.
6. Loan Approval and Closing
If your application meets the lender’s requirements, you will receive a loan approval. At this stage, the lender will prepare the necessary loan documents for closing. You will review and sign these documents, and the lender will disburse the funds to complete the purchase transaction. Closing typically involves paying closing costs, signing legal documents, and transferring ownership of the property.
Important Note:
Throughout the mortgage application process, it’s important to communicate promptly and effectively with your lender. Respond to any requests for information or documentation in a timely manner to avoid delays. Working closely with your lender will help ensure a smoother application process.
Completing the Mortgage Closing Process
The mortgage closing process is the final step in securing your loan and completing the home purchase. It involves several important tasks and legal procedures that need to be completed before you officially become a homeowner. Here’s an overview of the mortgage closing process:
1. Review the Closing Disclosure
Before the closing, you will receive a Closing Disclosure, which provides details about the loan terms, closing costs, and other financial aspects of the transaction. Carefully review this document and compare it to the Loan Estimate you received earlier. Contact your lender if you have any questions or concerns.
2. Schedule the Closing
Coordinate with all parties involved, including your lender, real estate agent, and closing agent, to schedule a date, time, and location for the closing. Ensure that all parties can attend the closing and bring the necessary documents and funds.
3. Prepare the Funds for Closing
Determine the amount of money you need to bring to the closing. This will include your down payment, closing costs, and any other applicable fees. Coordinate with your lender to ensure that you have the funds available in the appropriate form, such as a cashier’s check or wire transfer.
4. Conduct a Final Walkthrough
Before the closing, conduct a final walkthrough of the property to ensure that it is in the expected condition and that any negotiated repairs or changes have been completed. Verify that all fixtures, appliances, and systems are in working order.
5. Attend the Closing
On the scheduled closing date, you will meet with the seller, closing agent, and possibly your real estate agent or attorney to finalize the transaction. During the closing, you will review and sign various legal documents, including the mortgage note, deed of trust, and other loan-related paperwork.
6. Pay Closing Costs and Other Fees
At the closing, you will be required to pay the closing costs and any other fees associated with the transaction. This includes fees for the appraisal, title search, title insurance, attorney fees, and other services. Ensure that you have the necessary funds available to cover these expenses.
7. Transfer Ownership and Receive Keys
Once all the documents are signed and funds have been disbursed, the ownership of the property is transferred to you. You will receive the keys to your new home, officially becoming a homeowner.
Important Note:
The mortgage closing process involves numerous legal and financial documents. It’s crucial to read and understand all the documents before signing them. If you have any questions or concerns, don’t hesitate to seek clarification from the closing agent, your real estate agent, or an attorney.
Tips for a Smooth Mortgage Approval
- Maintain a Good Credit Profile:
Prioritize making timely payments on all your debts and avoid taking on new credit obligations. Monitor your credit report regularly and address any errors or discrepancies promptly. - Save for a Down Payment:
Start saving early for a down payment. A larger down payment can improve your chances of mortgage approval and potentially lead to better loan terms. Consider budgeting and cutting unnecessary expenses to boost your savings. - Get Preapproved:
Before starting your home search, get preapproved for a mortgage. This will give you a clear understanding of your budget and make you a more attractive buyer to sellers. Preapproval demonstrates your financial readiness and can expedite the mortgage process. - Organize Your Financial Documents:
Gather all the necessary financial documents, such as proof of income, bank statements, tax returns, and employment verification. Having these documents readily available will streamline the application process and prevent delays. - Respond Promptly to Lender Requests:
Stay proactive and responsive during the mortgage application process. If the lender requests additional information or documentation, provide it promptly to keep the process moving smoothly. - Avoid Major Financial Changes:
While going through the mortgage approval process, avoid making significant financial changes, such as quitting your job, opening new credit accounts, or making large purchases. These changes can affect your financial stability and impact your mortgage application. - Work with a Reliable Mortgage Professional:
Partner with a trusted mortgage professional who can guide you through the process, answer your questions, and provide valuable advice. Their expertise will help ensure a smooth mortgage approval process. - Be Realistic with Home Shopping:
Keep your budget and preapproval amount in mind when searching for homes. Avoid falling in love with a property that is beyond your financial means. Stay focused on finding a home that fits comfortably within your budget. - Read and Understand Loan Documents:
Take the time to carefully read and understand all the loan documents before signing them. If you have any questions or concerns, seek clarification from your lender or a professional who can explain the terms and conditions to you. - Be Patient and Prepared for Closing:
The mortgage approval process can take time, so it’s important to remain patient and prepared. Stay in communication with your lender, respond to any outstanding requirements, and be ready to complete the closing process when the time comes.
By following these tips, you can enhance your chances of a smooth mortgage approval process and achieve your goal of homeownership. Good luck with your mortgage application!
Conclusion
In conclusion, obtaining a mortgage is a significant step towards fulfilling your dream of homeownership. Throughout this article, we have explored various aspects of the mortgage process, from understanding different mortgage types to completing the closing process. By following the steps outlined and considering the tips provided, you can navigate the mortgage journey with confidence and increase your chances of a smooth and successful mortgage approval.
Remember to assess your budget and financial readiness, research different mortgage options, gather the necessary documents, and compare rates and terms from multiple lenders. Getting preapproved and choosing the right mortgage that aligns with your financial goals and needs is crucial. Additionally, maintaining good credit, being responsive to lender requests, and understanding the loan documents are essential for a smooth mortgage approval process.
As you embark on your homeownership journey, it is recommended to consult with professionals, such as mortgage lenders, real estate agents, and attorneys, who can provide personalized guidance based on your specific circumstances.
Owning a home is a significant milestone, and with careful planning and preparation, you can turn your dream of homeownership into a reality. Best of luck as you move forward in securing your mortgage and finding the perfect home for you and your family.
Frequently Asked Questions
Q: Can foreigners get a mortgage in the UK?
A: Yes, foreigners can generally get a mortgage in the UK. However, the requirements may vary depending on factors such as visa status, residency, and credit history. It’s advisable to consult with mortgage lenders who specialize in lending to non-UK residents.
Q: How do I get started with a mortgage?
A: To get started with a mortgage, you should begin by assessing your financial situation, determining your budget, and saving for a down payment. Then, research different mortgage options, compare rates and terms from various lenders, and get preapproved. Working with a mortgage professional can also help guide you through the process.
Q: What does it mean to get a mortgage?
A: Getting a mortgage means borrowing money from a lender to purchase a property. The mortgage is a loan that is secured by the property itself. The borrower agrees to repay the loan, typically with interest, over a specified period of time.
Q: How much deposit is required for a mortgage?
A: The deposit required for a mortgage can vary depending on several factors, including the type of mortgage and the lender’s requirements. In general, a deposit of 5% to 20% of the property’s purchase price is common. However, some mortgage programs may offer options for lower or higher deposit amounts.
Q: Can you get a mortgage if you’re single?
A: Yes, you can get a mortgage if you’re single. Lenders evaluate mortgage applications based on various factors, including income, credit history, and financial stability. As long as you meet the lender’s requirements and can demonstrate the ability to repay the loan, being single does not prevent you from obtaining a mortgage.
Q: What is the fastest way to get a mortgage?
A: The speed of obtaining a mortgage can vary depending on individual circumstances and the lender’s processes. However, some ways to expedite the process include having all necessary documentation prepared in advance, being responsive to lender requests, and working with a mortgage professional who can guide you through the process efficiently.
Q: How long do I need to live in the UK to get a mortgage?
A: The residency requirements for getting a mortgage in the UK can vary among lenders. Some lenders may require you to have been living in the UK for a certain period, typically at least three years. However, it’s important to note that each lender has its own policies, so it’s advisable to check with different lenders to understand their specific requirements.
Q: Can I get a 100% mortgage in the UK?
A: While 100% mortgages used to be more common, they are less prevalent in the UK mortgage market today. Most lenders require a deposit, typically ranging from 5% to 20% of the property’s purchase price. However, there are some mortgage options available that allow for higher loan-to-value ratios, such as guarantor mortgages or specific government-backed schemes.