MortgagesNeed help getting a mortgage? We're here to help.
Choosing a mortgage is probably the biggest financial decision you will make. However with thousands of mortgages to choose from it can seem like an impossible maze to find your way through.
A mortgage is a sum of money borrowed from a bank or building society in order to purchase a property. The money is then paid back to the lender over a fixed period of time together with accrued interest. There are many different types of mortgages and there will be one out there that best suits your requirements. If you’re going to make the most of your mortgage, you need to minimise the amount of interest that you pay.
We can find a mortgage product to suit your own individual requirements. Whether you are a first time buyer or wish to re-mortgage, we will endeavour to recommend a product to suit your needs. A mortgage is potentially the largest financial commitment of your life, and therefore, every enquiry is treated with the respect that it deserves.
We can help you to find the right mortgage. We have exclusive UK mortgage deals from reputable lenders that you won’t find anywhere else, and a large range of mortgage options to suit almost any buyer.
We can help – even if you have difficult circumstances:
Buying a new home, moving or better deal
Company directors or employees who need flexibility of income multiples.
Capital raising - for any purpose.
We will liaise with you, your lender and solicitor and manage the process right through to getting a satisfactory offer.
We'll be the central point of contact for your mortgage application, keeping you updated every step of the way.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our fees and charges vary depending on the Services we provide to you. We typically charge a fee of up to 1% of the loan amount payable on completion. For example for a £100,000 mortgage we will charge £1000. Our typical fee is £495.
What are the different types of mortgages?
First Time Buyer Mortgages
Buying a house is one of the most important purchases you will make. Buying a home for the first time can be an even more daunting prospect. With so many factors to consider it can be difficult to know where to begin when looking for your first mortgage.
There are ways for first time buyers to get on the property ladder. It’s about knowing all the options available to you. We can help you compare the full range of mortgage products available and find the best deal to suit your needs.
Moving Home Mortgages
Moving home can be a stressful experience – not least when trying to understand how it will affect your mortgage arrangements. You may want to switch mortgage provider, move to a bigger house and increase your loan amount, or downgrade and lower your monthly repayments.
There are a number of other factors to consider when moving home including the lender’s valuation fee and your own survey, plus buildings and contents insurance. We will scour the whole of the market to find the best deals for you and offer home mover information to help you find the right offer.
A re-mortgage simply means moving your mortgage to another lender. There are a number of reasons you may want to do this including releasing additional cash to pay off other loans or make a special purchase, for example, a new car or simply find a better deal for you that could lower your outgoings.
Re-mortgaging is now very common in the UK with nearly half of all loans granted being used for this purpose. Re-mortgaging is far simpler than arranging the loan for your original house purchase and therefore normally takes much less time to arrange.
We listen carefully to what YOU want and then we go away and do all the hard work to find you the best mortgage for your circumstances.
Buy to Let Mortgages
A buy to let mortgage is when you purchase a second property with the intention of letting it out to tenants. Many people want to increase the size of their property portfolio to take advantage of rising house prices and rental rates. Of course, while it can be a very lucrative endeavour, it’s important to make sure you invest in the right kind of property and secure the best mortgage available.
If you’re thinking about buy to let mortgages, whether it’s your first investment or you’re a seasoned private landlord, use our search facility and we can help you find the best option in minutes.
The Financial Conduct Authority does not regulate buy to let mortgages.
Shared Ownership Mortgages
Shared ownership mortgage schemes are a Government incentive backed up by developers and housing associations in order to provide highly quality affordable housing for first time buyers and other key workers. The shared ownership mortgage scheme works by property buyers ‘sharing’ the ownership of the property. On the initial purchase you willtypically buy between 25 and 75 per cent of the total property value. The remaining 75 to 25 percent of the property is owned jointly, usually with a housing association. They charge you a ‘rent’ for the section you do not own. The main benefit of getting a shared ownership mortgage is that you get a foothold on the housing ladder and benefit from the increase to the value of your ‘share’. Not all lenders are willing to provide Shared Ownership Mortgages, however we can find the best lender for you from the whole of the market.
Which mortgage rate is best for me?
Standard variable rate mortgages
A standard variable mortgage is based on the lender’s basic mortgage rate, commonly known as the Standard Variable Mortgage Rate. It is usually the rate that customers revert to after a fixed, capped or discount period ends. This mortgage is regarded by some as the least complex mortgage type with the interest rate varying (rising and falling) in response to changes in the UK base rate. The base rate is set by the Bank of England and lenders are free to decide for themselves the amount that they will alter their own interest rates by in relation to these movements in base rate.
Fixed Rate Mortgages
A fixed rate mortgage provides guaranteed monthly payments for a predetermined period of time. If you’re the kind of person who likes certainty and the reassurance of knowing exactly what your monthly outgoings will be, then a fixed rate mortgage may be most suitable for you.
Pros and cons of a fixed rate mortgage
- One of the most popular types of mortgage, as it offers stability and allows you to control your budget more effectively.
- This also makes it the favourite choice of young families and single homeowners who don’t want to take the risk of a large rise in interest rates -which would mean an increase in monthly repayment amounts.
- If you expect there to be changes in your financial circumstances in the near future, a fixed rate is usually the best option.
- However – if interest rates fall, you won’t see the benefit.
- When your fixed term ends, your payments may rise as you switch to the normal variable rate.
Tracker Rate Mortgages
With a base rate tracker mortgage the rate of interest you pay is tied to the base rate set by the Bank of England. Typically the tracker mortgage rate will be set as a percentage above the base rate and although the resulting interest rate is usually lower than a mortgage lender’s standard variable rate, this will vary from lender to lender. Some tracker mortgages last for the entire mortgage term (lifetime trackers), but most have a specified tracker period before returning to fixed or standard variable rates.
Is a tracker mortgage right for me?
A tracker mortgage isn’t right for everyone. It’s worth considering the following advantages and disadvantages:
- If the base rate falls, then your interest payments are reduced
- There is usually a cap on how much more you will pay above the base rate
- However, if the base rate rises, then so do your monthly payments
- Your deal may have early repayment or switch charges
- Some tracker mortgages have a set minimum interest rate, meaning that if the base rate falls below this you won’t see the benefit
Discounted Rate Mortgages
A discount rate mortgage offers a percentage discount from the lender’s normal variable rate for a set period of time.
When the standard variable rate fluctuates, the discount will remain fixed, however, the amount of discount and the period will vary from deal to deal. Discount mortgages are more suitable for people who prioritise low initial payments at the expense of higher rates later on; for example first time buyers, whose income isn’t so high who want to have some spare cash to spend on furnishing their new home.
Discounted mortgage pros and cons
- Discounted mortgages are good deals for people able to manage any fluctuations in their monthly repayments.
- If interest rates fall, you will benefit from lower payments.
- They are some of the cheaper available mortgages, but they are tied to a risk of increased interest rates.
- People who prefer to know exactly how much they will pay each month will probably prefer a fixed rate mortgage.
- Discounted loans only stay at the lower rate for a certain period (usually 2-3 years). After that the repayments will return to normal.
- As with any variable loan or mortgage it is important to remember that payments can go up as well as down.
- If you want to switch to another type of mortgage before your term ends, you may have to pay a charge.
Capped Rate Mortgages
A capped rate mortgage puts a maximum limit on the interest rate that you have to pay. You therefore gain the security of having a ‘ceiling’ or upper limit to the amount that the lender can increase the interest payable on your mortgage. This period of capped interest is for a specified period only; typically between one and five years. At the end of the specified period your mortgage will usually revert to a variable rate.
Is a capped mortgage right for me?
Before you take out a capped mortgage, you should consider the following advantages and disadvantages:
- If interest rates rise, you know that you won’t have to pay beyond a certain amount
- If rates fall, you can still enjoy lower payments
- It’s easier to budget, as you know how much your monthly repayments will be
- Initially, you may have to pay more than a fixed or discounted mortgage
- There are often early repayment charges
- The capped rate only lasts for a certain period (often 2-3 years), then the mortgage usually returns to the lenders SVR (standard variable rate)
Cash-back mortgages are often aimed at first time buyers and the mortgage lender will offer a lump sum of cash at the start, or sometimes at an agreed point during the term, of your mortgage. Usually the cash-back is offered as a package of benefits (e.g. linked with a discount) but pure cash-back mortgages are not uncommon. Mortgage lenders may offer a sum of money towards the cost of legal fees or survey charges. This could be, for example, a flat amount, or a percentage of the mortgage loan. In some cases you may have to repay some of the cash-back element if you repay the mortgage before the end of the term.
How do I repay my mortgage?
A repayment mortgage (or capital and interest mortgage) guarantees your loan is paid off in full at the end of the agreed term. With a repayment mortgage you make monthly payments that cover both the interest on the loan and the repayment of the loan itself. This brings the peace of mind of knowing that you are reducing your debt every month. A repayment mortgage offers the reassurance that once the final payment has been made you will have paid off the mortgage in full (providing all the repayments have been made).
Interest Only Mortgages
With an interest-only mortgage you only pay-off the interest on the loan and none of the outstanding debt until the end of the term. As the debt is still outstanding at the end of the term there are a number of ways this may be repaid:
- Contribution to an investment plan designed to pay off the outstanding capital at the end of the mortgage term.
- A lump sum from a pension plan. In these circumstances there will be a reduced income from the pension due to taking the lump sum.
- Sale of the property in the future or the sale of another property.
Interest-only mortgages usually have lower monthly payments than a repayment mortgage but are inherently more risky. There is no guarantee that the investment plan you choose will generate sufficient capital to pay off the outstanding debt at the end of the mortgage term. However, should your investment be successful, you may be able to pay off your debt and have a lump sum left over, or even clear the debt in advance of the expected date.
Flexible mortgages allow you to take more control when paying back your loan. Depending on the deal, you can choose how much you pay back per month, take payment breaks or even borrow back overpayments. The vast majority of flexible mortgage borrowers make overpayments on their mortgages. This may seem like a strange concept, but it makes great sense. If you can get rid of your mortgage early you can save yourself tens of thousands of pounds in interest payments. So if you can afford to make some overpayments why not do so? And overpaying by very small amounts can help.