Mortgage

Mortgages

mortgageWhether you are you are just looking for some initial mortgage advice, need an Agreement in Principle, purchasing your first home, moving home or purchasing an investment property we can help you to establish your budget and recommend the best lender suited to your individual circumstances.

The headline mortgage rate doesn’t always mean that it is the cheapest. We take into account all of the fees and charges involved to find the most competitive product overall.

Please see below some of the different type of mortgages that are available.

Re-Mortgages

re-mortgagesThere are a number of reasons that people look to re-mortgage and the below are the most popular reasons:

  • To Get a Better Rate- Getting a better rate could save you thousands of pounds over the life of your borrowing. If your current deal is coming to an end or if you are on your lenders standard variable rate, we can carry out a free financial review to see how much money you could save and If you are better off staying where you are we will let you know.
  • Debt Consolidation- If you’re a homeowner and have multiple debts, you can use re-mortgaging, to clear these debts. However, you should always think very carefully before opting for this route as your property will naturally be at risk if you fail to meet the repayments. Your home may be repossessed if you do not keep up repayments on your mortgage and you will potentially pay more interest by consolidating if the loan is increased and the term is extended.
    Debt consolidation is not always the most suitable option, consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, you should think carefully before securing other debts against your home. There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service http://https//www.moneyadviceservice.org.uk/en/articles/where-to-go-to-get-free-debt-advice these services may be more suitable for you.
    THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
  • Home Improvements- Many people re-mortgage to raise additional funds in order to carry out home improvement work to their property. Again contact us for a free financial review to see how much extra you would be able to borrow.


Please see below some of the different type of mortgages that are available.

Buy To Let

buy-to-letInvestment in property to let is proving ever more popular and although potentially lucrative both in terms of income and capital growth it is important that you receive professional guidance.

Buy-to-let mortgages allow you to borrow money to buy properties that you then rent out to tenants. These mortgages are similar to those for owner-occupied properties, so if you already own a house, the good news is there may not be too much more for you to learn. There are, however, some stark differences between buy-to-let mortgages and normal residential mortgages:

  • Buy-to-let mortgage deposit- While you may only need a relatively low deposit for a mortgage on your own home, this is not the case with buy-to-let mortgages. Typically, the highest loan-to-value (LTV) mortgage you will be able to get is 75%, which means you will need to have a deposit of at least 25% of the value of the property you are looking to buy. Usually, the lower the LTV, the better the mortgage rates available, so you will get a more favourable rate of interest if you have a deposit of around 40%.
  • Buy-to-let mortgage interest rates- Interest rates on buy-to-let mortgages tend to be a little higher than those on other residential mortgages, this is because there is more risk of the borrower defaulting on their repayments.
  • Interest only versus repayment- When you start looking for a buy-to-let mortgage, you will notice they fall in to two main categories; repayment and interest only:
    • Repayment- with a repayment mortgage, each month you will pay interest as well as the some of the actual loan. To start with, you will mainly just be repaying the interest and a small proportion of the loan, but as time goes on a smaller proportion of your repayments will go towards the interest and more towards the actual loan.
    • Interest only- With an interest only mortgage, you only repay the interest on your loan, you do not pay off any of the loan itself.
      Interest only mortgages are popular among those who have bought property to rent. By paying off the interest on the loan, you do not become more in debt and you eventually pay off the full loan when you sell the property (provided it has not decreased in value). Any income you receive in the form of rent is taxable and you need to declare it on your Self-Assessment tax return, but certain “allowable expenses” can be deducted, such as the interest on your mortgage, so if you have an interest only mortgage and you are paying £1,000 per month and receiving £1,250 in rent, you will only have to pay tax on the remaining £250.


Please see below some of the different type of mortgages that are available.

Types of Mortgages Available

fixed-rate

Fixed Rate

Fixed rate mortgages are usually considered the safest and simplest type of mortgages. Under this a fixed rate is payable for a certain period of time and safeguards from increasing rates as your monthly payments will remain the same. If rates fall sharply during the fixed period, you will be left paying relatively high rate.

variable-rate

Variable Rate

Variable rate mortgages mean that the interest on your mortgage loan can vary over time. Standard variable rates can be influenced by changes in the level of the Bank of England’s base rate. Variable mortgages come with an element of risk as your monthly repayments can go up or down as well.

variable-rate

Discounted Variable Rate

Discounted variable rate is another type of mortgage rate offered by lenders. The lender offers a lower rate for a certain period of time and during this period you have to pay lower repayments depending on the discounts. However, when the discount period gets over the borrower will be transferred to the lenders standard variable rate.

tracker-rate

Tracker Rate

A tracker rate usually follows the Base rate of interest also known as Bank rate and is set by the Bank of England. Under tracker rate your repayments will fluctuate and it follows in line with the base rate movements. For Example, if your tracker mortgage is +3% and the Base rate is +3% then you pay 6%.

offset

Offset

With an offset mortgage, your mortgages and savings account are combined into one single account. It basically means the amount that you have in your savings account is counted as temporary overpayments towards your mortgage. However, with an offset mortgage you can access your savings and get at them if you need.

capped-rate

Capped Rate

Under capped rate mortgages the interest rate cannot go above a certain agreed limit. Capped rate mortgages help to plan your budget more effectively. When the interest comes down then the borrower has to pay a lesser monthly payment although there may also be an agreed floor level. As the capped rate is for a particular period of time so as soon as it ends the mortgage rate goes back to the appropriate variable rate.

cashback

Cashback

Cashback mortgages provides a lump sum back when the purchase is complete. This can either be in the form of a set amount or a percentage of the amount that is borrowed (typically 2 to 5 per cent). The cash back is refundable if the mortgage is settled before a certain period set by the lender.

current-account-mortgage

Current Account Mortgages

Current Account Mortgages are usually combines the borrower’s bank account with the mortgage. The account displays the outstanding balances that have been borrowed giving an opportunity to the borrower to view how much they have left to pay off. The biggest advantage of current account mortgage is that when the interest is calculated on the sum borrowed then the funds in the current account are taken off the mortgage.

flexible-mortgages

Flexible Mortgages

Flexible mortgages are also known as ‘open plan’ or ‘freedom mortgages’. Flexible mortgages are usually developed to cope with the borrower’s lifestyle or drastic changes in the borrower’s financial situations. Flexible mortgages allow the borrower to pay off the mortgage with fluctuating monthly payments. Some flexible mortgages provider also gives out the option of ‘payment holidays’ under which the borrower doesn’t have to make any payment and can even borrow back money if they have repaid some of the capital borrowed. Some of the features of Flexible mortgage are monthly overpayments, lump sum payments towards the mortgage, reducing payments during difficult financial conditions etc.