Mortgage Advice

Most people require a mortgage in order to purchase a home since the cost of paying for a home upfront is outside of their personal finances.  In its simplest terms, a mortgage is a loan that is acquired in order to pay for a home and the surrounding land.

The only difference is that your home is used as collateral for this type of loan, meaning that’s if you stop making payments the lender can take back your home if you do not keep up payments on it.

There are many things to consider while negotiating a mortgage , including the method of repayment, how much you can afford to pay, how long you think you will stay in the property as well as whether you should buy a  fixed rate and for how long, or pick a mortgage product with varying payments depending on interest rate movements which are either governed by the bank of England  or by the lender them selves, The latter  are generally known as discounted or tracker rates and can vary in length of time. The term of the mortgage makes a difference to your payments so setting a monthly budget is important; however the term can be affected by your age as some lenders restrict the maximum term to say your 65th birthday.

Other types of mortgages available include retirement home plans mortgages were you can still borrow in retirement as long as you can prove adequate income.

Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up payments on your mortgage.

Buy to Let Mortgages

Buy to let mortgages are designed to give those with commercial interests in a property by letting it a product to purchase it.  Typically, buy to let mortgages depending on the loan to value have a competitive  interest rate attached to them. Again due to the current credit crisis this area of lending has been hit and some products have had large fees added to them, that is why again it’s important to get advise.

Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up payments on your mortgage.

First time buyer Mortgages

For first time buyers of a mortgage, the housing and lending market can be intimidating.  Although the current housing market has made it difficult for first time buyers, schemes such as the key workers scheme and other similar schemes give you a helping hand if eligible under their criteria.

If this is not an option, a parent or relative can be your guarantor , although there arnt many lenders that do this at present. the guarantor signs that they are responsible for the property if you fail to make the payments, allowing you to borrow much more than your income would warrant without their aid.

Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up payments on your mortgage.

Remortgages

There are several reasons that you may want to consider a remortgage deal if you currently have a mortgage.  First and foremost is that when your existing product comes to an end, you might want to secure a new fixed or discount/tracker rate for a set time.

Many people remortgage their home in order to free up the equity they have in their home to pay off past debts or raise capital for home improvements or a second property purchase. You should however consider carefully before adding unsecured debt to your mortgage.

Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up payments on your mortgage.

Your employment status

Depending on the way you earn your income either employed, self employed or a director of your own company, different forms of income proof will be asked for, it is also now possible to use less usual forms of income with mainstream lenders such as tax credits and income from other property or say a pension  to help boost your borrowing capacity.

If you usually work on short term contracts or sub contract work certain lenders are more flexable than others, again its our job to point you in the right direction.

Think carefully before securing other debts against your home.your property may be repossessed if you do not keep up repayments on your mortgage.