A simpler way to buy a home or remortgage
First Time Buyer
Getting onto the property ladder can be a big step. Let us help you make that first step.
Looking for a new deal? You may be able to save money by remortgaging.
Thinking about your next move? We will take care of your mortgage so you can focus on the move.
Buy To Let
If you’re expanding your property portfolio or investing for the future. We’ll help you get that Buy to Let.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
First Time Buyer
Getting onto the property ladder
The prospect of owning your own home is very exciting. Taking your first steps onto the housing ladder with a mortgage may seem scary and complicated. But don’t worry we’re here to help!
Questions we often get asked:
- How big a deposit will I need?
- Which mortgage is right for me?
- What are the different mortgage options?
- What is Stamp Duty Land Tax (SDLT)?
- What other costs are there?
It can be daunting at first but that’s what we are here for. We are on hand to take the hassle out of finding and applying for your mortgage. As we are independent we have access to a wide range of lenders from mainstream lenders and banks to specialist and niche lenders. This wide view of the market means we can find a suitable product for you.
Get in touch to discuss what you are looking for.
Remortgage to new deal
Change the mortgage deal you are currently on, either by switching to a new lender, or staying with your existing lender and moving to a different rate. You may be able to lower your interest rates or better your mortgage terms.
Reasons to remortgage:
- Your current deal may be due to expire soon – you may be put on your lender Standard Variable Rate (SVR) which is often a higher interest rate.
- Find a better deal – lower rates or longer terms
- Borrow additional money – for renovations or improvements to add value to your property.
- New mortgage terms – find a lender with flexible terms to help with your plans.
- Your property may have increased in value, you may get a better rate as the loan-to-value will be lower.
It’s definitely worth checking the latest offers if your current mortgage deal is about to end soon. We can run you through your options and get you your next mortgage deal.
Get a new deal for your new home
Thinking about your dream home, needing more space or looking to relocate? Wherever your next move takes you, we’ll find the right mortgage for your plans.
Before you start searching for your next home, you’ll want to find out how much you may be able to borrow. We can run you through your options, give you an idea of how much you can borrow and discuss the latest rates and how much your monthly payments may be.
If you’re moving home and you already have a mortgage on your current home, you might be able to transfer the mortgage to your new property. It’s worth checking your current mortgage details to find out whether you are able to port your existing mortgage. We can then help you make the switch over.
If you’re looking to upsize to a more expensive property, we can look at all the options for you, including porting your existing mortgage over or taking out a new mortgage with a new lender.
Get in contact and we can help you make that next move.
Buy To Let
Expand Your Property Portfolio
A Buy To Let mortgage is a mortgage for a property you are looking to buy as an investment, rather than for somewhere you want to live yourself. Ideal if you are looking to invest in property or a new landlord looking to take their first steps into the rental property market.
Buy To Let mortgages do work differently from residential mortgages, we can check whether you’re eligible and can afford this type of mortgage.
How we can help you get a Buy To Let Mortgage:
- Check your eligibility to borrow
- Find out how much you can borrow
- Arrange an Agreement In Principle with a lender
- You find a property to purchase
- We complete the application with you
Unlike regular residential mortgages, a Buy To Let mortgage is commonly offered on an interest-only basis. This means that your monthly payments will only pay the interest on your mortgage. The mortgage will not reduce unless you choose to make extra payments or take out a repayment mortgage. You will need to pay the mortgage off in full at the end of the term. You could do this by either selling the property or keep the property and take out another mortgage.
Get in contact, we can run you through your options and get you your Buy To Let mortgage.
Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority
Your home may be repossessed if you do not keep up repayments on your mortgage
More about First Time Buyers
With all mortgages, you will need to pay an amount towards the purchase of your property, known as a deposit.
Your deposit should ideally be a minimum of 10% of the purchase price of the property, and the bigger your deposit, the better the interest rate will be.
Savings are most commonly used as a deposit. If your savings could do with a boost, a gifted deposit from a close relative is allowed. As the deposit is gifted, it means the relative does not have any expectation for you to pay any money back – they do not have any ownership of the property and they do not have the right to reside in the property.
When you know how much deposit you have, the next step is to establish which mortgage is right for you.
Fixed Rate Mortgage – This means that the interest rate is set and remains the same for a defined period; usually 2 years, 3 years or 5 years but some are as long as 10 years. Your monthly payment is not going to change during this time so this is ideal if you like to have control of your outgoings and establish a budget for your other monthly expenses.
Tracker Mortgage – The interest rate usually sits slightly above and follows the Bank of England Base Rate, making this a variable mortgage, therefore, if the base rate changes, so will your mortgage payment.
Discount Mortgage – This is a discount on the lender’s usual variable rate (known as a Standard Variable Rate or SVR). If the lender adjusts their SVR, then this will directly adjust your monthly payment.
Offset Mortgage – Lenders who offer offset mortgages allow you to link your current and savings accounts to your mortgage. In turn, this saves you money as it reduces the amount of interest you pay because interest is only charged on the net balance.
Guarantor Mortgage – Parents or close family members can become a guarantor which means they can help you if you have a low income, a small deposit, bad credit score or no credit history at all. This does mean that the family member would be responsible for covering the mortgage payments if you are unable to.
- Save a bigger deposit
- Get on the electoral roll
- Carefully manage available credit
- Make payments on time
- Build a good credit history
- Cancel unused credit cards
- Do not apply for credit shortly before a mortgage
- Limit using search engines for insurances
- Cut back on unnecessary spending
- Get your documents ready
Documents that lenders typically require are copies your of ID, proof of your income, bank statements and proof of your deposit; other documents may be required.
The information from your documents and details you have provided are used to initially agree your ‘mortgage in principle’ where the lender will check you fit their initial lending criteria and check your credit rating is strong enough.
Once your ‘mortgage in principle’ is approved, your full mortgage application can be submitted, together with your documents for underwriting. Whilst this is happening, the lender will instruct the mortgage valuation.
If the lender is satisfied with the valuation and your documents, they will issue you a Mortgage Offer – this is confirmation they are happy to lend to you.
The Mortgage Offer is issued to your solicitor as well as you so they can commence the conveyancing.
Your solicitor is responsible for the legal and administrative work required to transfer ownership of the property, including the transfer of money during the sale, updating Land Registry, arranging the payment of Stamp Duty (if applicable) and carrying out local authority searches such as a drainage search, environmental search and a planning search (if there are nearby plans for development).
Your mortgage will then be approved and you exchange contracts. At this point, you are now legally bound to purchase the property and are required to transfer your deposit. As you are now liable for the property, you ought to ensure your insurance is in place in case anything happens to the property or to yourself. Remember – the property and mortgage are legally your responsibility, even if you have not moved in!
Completion Day is Celebration Day as it is when you get the keys for your dream home from the estate agent – Home Sweet Home!
More about Mortgages
Typically, mortgages last around 20-30 years, but this can change according to a whole variety of factors. When you set up your mortgage you will decide the term (i.e. the length of the mortgage) according to your repayment plan.
The value of what you can borrow will depend on various factors to do with your current financial situation as well as the value of the property that is being purchased/remortgaged.
Traditionally mortgage lenders used to use a simple basic multiple of your base income in order to calculate how much they are willing to lend you. Nowadays lenders will conduct a more thorough financial evaluation, taking into account your net income, with your regular monthly outgoings and expenses are considered, in order to calculate how much you can borrow. Lenders will also look at your credit score and any loans or credit cards you currently have.
When purchasing a property you will need to calculate the value of the deposit you can pay or are required to pay up front before a mortgage lender will lend you the rest. The value of the deposit that you are required to pay will depend on your financial situation and credit history.
The difference between the amount borrowed and the actual value of the property is known as the loan-to-value ratio, or LTV.
For example – if you are looking to purchase a property worth £500,000 and you are required to pay a deposit of 10% (£50,000). The lender lends you £450,000 as the mortgage amount, this will give you an LTV of 90%.
If you are looking to move, most lenders will allow you to port your existing mortgage to your new property and continue paying as usual.
You may be required to have a new affordability and credit check carried out if your new property’s value is significantly different from your old property. If you do want to move house, you will need to contact your existing mortgage lender first and they’ll advise you on what your options are.
If you find yourself unable to keep up with the monthly repayments, then you need to contact your lender as soon as you are unable to make a payment. The lender may be able to offer you options to help you, some of the options that are available can be – taking a repayment holiday which is where you can stop payments for a short time, starting a new mortgage or adjustments to the existing repayment plan.
You should contact you lender as soon as possible, as multiple missed payments could result in your home being repossessed.
Usually the answer is yes, this is referred to as releasing equity, which is subject to affordability checks by your lender.
For example – If have a mortgage worth £500,000 on a property that is worth £550,000. The £50,000 difference between what you’ve borrowed and the value is the equity. If over the course of a few years, your property goes up in value, by another £50,000, then the equity in your property has increased. You could then choose to remortgage and release some of the equity as cash, while maintaining the same LTV on your mortgage.
If you do remortgage, there may be early repayment charges that your current lender might charge.
There are many mortgage products available to suit a whole range of financial situations and if your credit score is less than perfect, don’t worry, there is likely to be a mortgage that is available to you.
If you do have a poor credit score, you should be able to to get a mortgage product, however you may not be able to benefit from the best deals. The risk to lenders is increased if you have a poor record of repaying in the past, therefore you may be offered a slightly higher than normal interest rate, or maybe a lower LTV ratio.
Experience you can trust
Speak to us to discuss your requirements and the options available, book a call (no obligation) to speak to one of our advisers here.