Mortgages

COMPARE THE BEST MORTGAGE RATES
remortgage

REMORTGAGE

It is important to understand the terms of your existing mortgage. It is helpful for you to locate the original mortgage offer and your latest mortgage statement.
We can then help you understand the options available.
A remortgage to another lender may not always be the best option for you. You should always consider a product transfer with your existing lender. You can be assured that we will guide you through the whole remortgage process. Only when it is established a remortgage is the way forward, will we recommend making a formal application to the new lender. Many lenders will offer various incentives, typically free valuation and free legal transfer service.

moving

MOVING HOME

When considering a house move, you should start by having your house valued and obtain an up to date mortgage statement from your existing lender outlining the mortgage amount outstanding. Estate agents charge different fees and services so consider whom you approach carefully. You should also think about whether you have additional savings that can be used towards your deposit.

We then recommend an initial consultation.

We confirm the fees associated with moving house, the deposit available, and taking into consideration your monthly budget , what the lenders will allow you to borrow we will be able to give you an indication of the price range you should be looking at.

first-time-buyer

FIRST TIME BUYER

You may find buying your first home a little bit daunting. With the challenge of finding your first property, choosing the right mortgage, selecting the best solicitor and making sure everything runs smoothly, we will be on hand to guide you through the entire process.

However you may find the following information useful;

Please contact us to discuss your requirements in more detail.

 

buy-to-let

BUY TO LET

This can be a popular mortgage option for those wishing to invest in residential rental property and have a deposit of typically 25% of the property value. There are many lenders who offer competitive rates, which in many cases are generally similar to the rates offered on a standard mortgage. Landlords also have a choice between interest only and repayment mortgages. When lenders are considering approving a buy to let loan, they generally base their decision on the likely rental income from the property and not necessarily the applicants’ income.

A prospective landlord needs to be aware that the rental income typically needed is 125% of the mortgage repayment.

From 21 March 2016, due to the Mortgage Credit Directive (MCD) a Buy-to-let Mortgage falls into one of the following categories: Regulated mortgage contract, Consumer Buy-To-Let (CBTL), ‘Business’ Buy-to-Let (Unregulated) purchase price of a property.

 

shared-owndership

SHARED OWNERSHIP

If you can’t afford to buy outright, shared-ownership is an alternative way into home ownership. You can part buy/part rent your home. You might buy a 25%, 50% or 75% share and pay rent on the remaining share. The bigger the share that you purchase, the less rent you have to pay. When you can afford to do so, you can buy more shares until you own your home outright. This is known as ‘staircasing’. The share you don’t own and what you pay rent for, is usually owned by a ‘housing association’.

shared equity

SHARED EQUITY

Shared equity is not the same as shared ownership. With shared equity, you generally use an ‘equity loan’ to form part of a deposit but the person buying the home owns the whole property (though the provider of the equity loan usually has an agreement to share in any appreciation). From a customer’s perspective, the main difference between the two schemes is that you are likely to need a larger deposit on shared equity as the shares typically start from 75%, compared to as little as 25% on shared ownership.
Also, the main providers of shared equity and other equity loan schemes tend to be major housebuilders. The main shared equity schemes are usually for new build homes, currently known as
Help to Buy.

help-to-buy-2

HELP TO BUY

The Help to Buy scheme is made up of two parts: an ‘equity loan’ where the government will lend you up to 20% of the value of your newly-built home; and a ‘mortgage guarantee’ where the government will guarantee part of your mortgage if you only have a 5% deposit.

The equity loan scheme – for newly built property

This scheme is only available in England and started on 1 April 2013. Scotland, Wales and Northern Ireland will have funding for similar schemes.

Under the loan scheme, if you have a 5% deposit and want to buy a newly-built home, you can apply for a loan worth up to 20% of the value of the property. So you will only need to take out a mortgage for 75% of the cost of the property. The loan is funded by the government and will be interest-free for the first five years. From year 6 you will be charged interest at 1.75%, which rises in line with inflation each year thereafter. The equity loan will be repaid on sale of property, at the end of your mortgage term or you can apply to the Homes and Communities agency to repay it sooner. You must remember that the equity loan is always a percentage of the property value and will therefore fluctuate.

The mortgage guarantee scheme - for newly built and resale properties

It is available throughout the UK. The mortgage guarantee scheme is designed to help you get a mortgage, if you only have a 5% deposit.

One of the problems experienced by people looking for a mortgage is that most mortgages – and the lowest interest rates – are only available to those people who borrow 75% or less of the property value. If you’re looking to borrow 90% or 95% there are very limited options available.

However, under the scheme, if you have only a small deposit, lenders will be able to buy a guarantee from the government. This will compensate them if you default on your mortgage. So, in other words, with some of the risk removed, your mortgage company should be able to lend you the money to cover 90-95% of the purchase price of a property.

Some key advantages of the scheme are that the mortgage guarantee is available to movers as well as first-time buyers. It is also on both newly built and existing properties, and you can get it on properties worth up to £600,000.