A mortgage is probably the largest financial commitment you'll ever make.
Therefore it makes sense to ensure you obtain the right one for your circumstances.
Repayment, Interest Only, Fixed, Discounted, Tracker. The list seems endless, and it can often prove difficult or confusing for borrowers when trying to reach the right conclusions.
This is where a competent & experienced Mortgage Adviser can help smooth the path to finding the right solution for you.
Many of us are looking for a better mortgage deal, or would like to release some of the equity in our home but the process is often not as easy as it first appears.
So what do you need to know before you seriously consider remortgaging?
Where to start?
The first step is to contact us and we can advise you on the best remortgaging options.
We will work with you to check the terms and conditions of your existing mortgage. These will tell if you are tied-in to your mortgage deal or if there are any early repayment charges. You can then decide if it is worth switching to a different rate or stay put until the penalties have expired.
Which deal to choose?
There are broadly three types of deal on offer that we can talk you through in more detail and find out which option suits you best.
Fixed rate schemes - ideal for people who want certainty and must be able to regulate how much they will be spending each month.
Discounted loans - offer a reduction off the standard variable rate for a set period. If rates fall, the rate you will pay will go down but if rates rise, so do your payments.
Flexible mortgages - allow you to overpay and underpay (certain conditions may apply with regards to underpayments) when you choose, without penalty. This is ideal for people who have fluctuating incomes or who want to clear their mortgage early.
We assist experienced 'Home Owners' to raise funds to purchase their next property.
Some 'Home Movers' have redemption penalties on their existing mortgages and in most cases move (port) their existing mortgage to their new property. This process involves a new mortgage application with your existing lender, together with a check by the lender to make sure you meet their existing lending criteria. If you require additional borrowing, another mortgage is run along the side of the existing one. Most applicants do not take any advice at this stage. This can result in the applicant having redemption penalties on the 2 products which expire at different times, and in some cases a couple of years apart. This can result in the applicant being restricted or prevented from remortgaging when the first product expires.
We will give advice to all 'Home Movers' on the full choice of products available to them by their existing lender if they have to port their existing product. In addition we offer an 'Application Service' to these applicants. We will complete and submit your mortgage application to your existing lender together with any supporting documents required. We will then chase the lender on your behalf until a mortgage offer is issued and then assist you until your purchase completes.
First Time Buyers
If you're thinking about buying your first home you're probably finding the whole process of choosing the right mortgage and actually buying your ideal home rather daunting? So what do you need to know to get on to the first rung of the property ladder?
The first step is to contact us and we will advise you on the mortgage options available to you.
In the meantime we've outlined below some background information on mortgages for first time buyers that we hope you'll find useful.
How much can you borrow?
The amount of mortgage you can get depends on your income. Income multiples do vary. As a rough guide, a typical multiple is four times your income. This figure could be higher or lower depending upon your individual circumstances and different lenders' criteria.
From April 2014 all lenders are required to lend based on your affordability.
Once you add to this the amount that you can afford to pay as a deposit, you have the amount you can pay for your first property.
Some lenders offer very good deals for first time buyers, so it always worth asking us to research the market on your behalf.
Are there any other costs?
In addition to a small broker fee, it is also worth remembering that, in addition to your deposit and mortgage arrangement costs, there are other costs you will be expected to pay.
For example, you will have to pay stamp duty of 2% on the portion from £125,001 to £250,000, 5% on the portion from £250,001 to £925,000, 10% on the portion from £925,001 to £1.5 million and 12% on the portion above £1.5 million.
For properties up to £125,000 you do not have to pay stamp duty.
There are higher rates for additional properties. From November 2015 there is an additional stamp duty of 3%, on top of the standard rates mentioned above, for anyone owning additional properties.
In addition, you will have to pay for the survey and the valuation of the property, and solicitor's fees and you may also have to pay an arrangement fee for the mortgage.
Finding the right mortgage
We use sophisticated mortgage sourcing products, combined with a full appreciation of our clients requirements and current market conditions. We provide mortgage solutions from the whole of the market. This includes both 'Intermediary' and 'direct to lender' deals.