Mortgages

Finding the correct interest rate and best mortgage to suit your circumstances and then getting your mortgage application approved can be a challenge, and it's so important to get it right. We will tell you if we think you already have the best interest rate or if we believe we can help and save you money.

When you speak to a bank or building society, they can only tell you about their own rates. When dealing with mortgage advisers you should always check if they are whole of the market -many imply that they are but are tied to a network or a panel of lenders. You can check by asking for a copy of their IDD ( Initial Disclosure Document ) and Terms of Business.

We will guide you through the whole house buying process, taking as much stress away as possible including doing all the chasing with the lenders and ensuring the mortgage funds are available and in place on the day required.

There are plenty of reasons why you might want to consider a remortgage ;

1. Your current deal is coming to an end, and you are about to revert to your lenders variable rate, which may result in a sharp increase in your revised monthly mortgage payments.
2. There are more competitive rates on offer than with your existing lender.
3. You may wish to consider a remortgage to release equity to cover the costs of home improvements or pay off more expensive debts.
4. Remortgaging before your term ends could save you money by switching to another deal or another lender.
5. Reduce your mortgage term, which will save you £ 1000's over the long term.

We recommend you contact us to discuss your mortgage requirements up to 4 months before your current rate ends to ensure sufficient time to switch to another deal or lender.

Whatever the reason, we can research the market on your behalf, taking into account all associated costs and looking to save you as much money as possible, taking the stress away at the same time.

Also known as 'part buy, part rent', shared ownership is a scheme that allows you to buy a share of a property and pay rent on the rest - Designed to help people with small deposits and lower incomes get on the property ladder.

How it works

Purchasing a stake of between 25% and 75% of the property from a housing association (a not-for-profit organisation that supplies housing), and paying rent of up to 3% on the remaining share.
Typically you would put down a minimum 5% deposit (on your share), then, you pay for the rest of your share with a mortgage.

Note : Shared ownership is only available to first time buyers, those who've previously owned a home but can't afford to buy one now, and existing shared ownership homeowners who want to move house.

An offset mortgage is connected to another bank account - typically a savings account. The balance in the account helps towards your mortgage.

Offset mortgages work the same way as any other mortgage, except that interest is calculated differently.
Interest on a conventional mortgage is calculated on the borrowed amount minus any repayments. By contrast, interest on an offset mortgage is calculated on the outstanding amount, less the balance in the connected account. In other words, the money in your account reduces - or offsets - your mortgage’s outstanding balance.  This often means you pay less interest.

The most significant advantage of an offset mortgage is the potential for considerable savings. Since your mortgage interest is calculated on a lower amount of borrowing, you could pay much less on an offset mortgage than you would on a conventional one. This gives you the chance to either decrease your monthly repayments or continue to ‘overpay’ and repay your mortgage more quickly.

Key Highlights

1. An offset mortgage is connected to another bank account. Any money in that account offsets your mortgage’s outstanding balance.
2. An offset mortgage can work out cheaper and be repaid more quickly than a conventional mortgage.
3. Interest rates are typically higher than those of conventional mortgages. Unless you have a large sum of money saved up, an offset mortgage might not be worthwhile.

A Buy to let mortgage is specifically for people buying a property to rent out to a tenant or tenants.

You can have a Buy to Let in your name or set up a Limited Company solely to buy investment properties.
To ascertain which is the best route to suit your circumstances, we recommend you seek advice from an Accountant.

A Buy to let mortgage is comparable in most ways to a residential mortgage, however, the interest rates are typically higher, and you would require a larger deposit, normally a minimum of 25%.

With a Buy to let mortgage, lenders will look at the expected rental income, which must equal anywhere from 125% to 150% of the monthly interest payments at a specific rate of interest.

Each Buy to let lender has its own criteria and restrictions, so it is important to seek Independent Mortgage Advice.

HMO Mortgages

An HMO mortgage is a specialist buy to let mortgage explicitly designed for Houses of Multiple Occupation - sometimes called a house share. 

For example, Student accommodation, Bedsits or several flats on one freehold. If you want to rent out a HMO in England or Wales you need to contact your local council to check if you need a licence. 

As with other buy to let mortgages, most lenders will insist on a minimum age, income and assess the lending on expected rental income.

Equity Release

Equity Release products are designed for people over 55 to take cash value from their homes without moving. There is a wide range of Equity Release products that can provide a valuable source of income for some people.

These schemes allow the borrower to stay in their home and benefit from the cash released from the equity of their property until certain events occur, for example, moving into long term care or dying. At this point, the lender will be repaid, usually by the sale of the property.

There are different types of Equity Release Schemes, some of which mean ownership or part-ownership of the property passes to the Equity Release provider. Others draw a cash sum from a promise to repay the lender on the sale of the property. It is crucial if you are considering an Equity Release Scheme to understand the differences between the schemes, and this is something we can help you with.

AN EQUITY RELEASE PRODUCT WILL REDUCE THE VALUE OF YOUR ESTATE, AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFITS. PLEASE CONTACT US TO UNDERSTAND THE FEATURES AND RISKS.

Lifetime Mortgages

If you take out a Lifetime Mortgage, you are taking out a loan secured on your home, which does not need to be repaid until you die or move into long term care.

The lender can give you a lump sum or withdraw funds in stages. Interest is paid on an ongoing basis or can be rolled up and paid together when the loan is repaid.

The loan is repaid from the proceeds of your home when sold. If there is any surplus from the sale, it would be available to your beneficiaries or estate. It is usual to have agreed to a ‘ No Negative equity ‘ guarantee with the lender, which means if the value of your home is lower than the loan and interest accrued, you would not have to pay back the shortfall to the lender. 

IT IS VERY IMPORTANT TO GET INDEPENDENT ADVICE TO ENSURE WHETHER THIS SCHEME IS RIGHT FOR YOU

Bridging Loans / Short Term Finance

Bridging loans are a short term funding option typically used by property buyers to ‘Bridge’ the gap when buying a property and waiting for a traditional mortgage to be approved or capital to be released by the sale of their current property.

Bridging loans can also be used for various reasons such as significant structural home improvements, divorce, Inheritance planning, renovation projects or buying at auction.